Why is Hongfa Technology Co., Ltd. ?
1
- OPERATING CASH FLOW(Y) Highest at CNY 2,672.92 MM
- ROCE(HY) Highest at 19.38%
- RAW MATERIAL COST(Y) Fallen by -3% (YoY)
2
With ROE of 24.36%, it has a fair valuation with a 4.02 Price to Book Value
- Over the past year, while the stock has generated a return of 27.62%, its profits have risen by 19.1%
- At the current price, the company has a high dividend yield of 1.4
How much should you hold?
- Overall Portfolio exposure to Hongfa Technology Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hongfa Technology Co., Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Hongfa Technology Co., Ltd.
44.71%
0.08
46.70%
China Shanghai Composite
8.25%
1.58
14.20%
Quality key factors
Factor
Value
Sales Growth (5y)
15.96%
EBIT Growth (5y)
15.48%
EBIT to Interest (avg)
19.60
Debt to EBITDA (avg)
0.43
Net Debt to Equity (avg)
0.16
Sales to Capital Employed (avg)
1.08
Tax Ratio
12.16%
Dividend Payout Ratio
28.92%
Pledged Shares
0
Institutional Holding
0.02%
ROCE (avg)
21.70%
ROE (avg)
23.05%
Valuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
3.89
EV to EBIT
19.03
EV to EBITDA
14.55
EV to Capital Employed
3.89
EV to Sales
2.78
PEG Ratio
NA
Dividend Yield
1.00%
ROCE (Latest)
20.46%
ROE (Latest)
18.57%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Bullish
Bullish
Technical Movement
10What is working for the Company
NET SALES(Q)
Highest at CNY 5,914.35 MM
OPERATING PROFIT(Q)
Highest at CNY 1,255.3 MM
PRE-TAX PROFIT(Q)
Highest at CNY 1,000.53 MM
NET PROFIT(Q)
Highest at CNY 690.11 MM
EPS(Q)
Highest at CNY 0.43
-3What is not working for the Company
INTEREST(Q)
At CNY 16.25 MM has Grown at 37.58%
Here's what is working for Hongfa Technology Co., Ltd.
Net Sales
Highest at CNY 5,914.35 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Net Sales
At CNY 5,914.35 MM has Grown at 29.08%
over average net sales of the previous four periods of CNY 4,581.84 MMMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Operating Profit
Highest at CNY 1,255.3 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CNY MM)
Pre-Tax Profit
Highest at CNY 1,000.53 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 690.11 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.43
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Here's what is not working for Hongfa Technology Co., Ltd.
Interest
At CNY 16.25 MM has Grown at 37.58%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)






