ScoreWhy is Honghua Group Ltd. ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Operating profit has grown by an annual rate -19.39% of over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 0.36% signifying low profitability per unit of shareholders funds
2
With ROE of 1.14%, it has a Very Expensive valuation with a 0.33 Price to Book Value
- Over the past year, while the stock has generated a return of -42.80%, its profits have risen by 158% ; the PEG ratio of the company is 0.2
3
Below par performance in long term as well as near term
- Along with generating -42.80% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Honghua Group Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Honghua Group Ltd.
-42.8%
1.09
46.00%
Hang Seng Hong Kong
0.26%
0.01
20.12%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.14%
EBIT Growth (5y)
-19.39%
EBIT to Interest (avg)
-1.01
Debt to EBITDA (avg)
32.93
Net Debt to Equity (avg)
1.07
Sales to Capital Employed (avg)
0.57
Tax Ratio
39.90%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0.31%
ROE (avg)
0.36%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
29
Industry P/E
Price to Book Value
0.33
EV to EBIT
78.40
EV to EBITDA
12.11
EV to Capital Employed
0.69
EV to Sales
0.93
PEG Ratio
0.19
Dividend Yield
NA
ROCE (Latest)
0.87%
ROE (Latest)
1.14%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
OPERATING CASH FLOW(Y)
Highest at HKD 509.26 MM
PRE-TAX PROFIT(Q)
Highest at HKD 48.89 MM
NET PROFIT(Q)
At HKD 2.69 MM has Grown at 107.8%
INVENTORY TURNOVER RATIO(HY)
Highest at 3.42 times
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Honghua Group Ltd.
Operating Cash Flow
Highest at HKD 509.26 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (HKD MM)
Pre-Tax Profit
Highest at HKD 48.89 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (HKD MM)
Pre-Tax Profit
At HKD 48.89 MM has Grown at 119.27%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (HKD MM)
Net Profit
At HKD 2.69 MM has Grown at 107.8%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (HKD MM)
Inventory Turnover Ratio
Highest at 3.42 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Depreciation
Highest at HKD 195.96 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (HKD MM)
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