Hongmian Zhihui Science & Tech Innovation Co., Ltd. Guangzhou (000523) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hongmian Zhihui Science & Tech Innovation Co., Ltd. Guangzhou

Why is Hongmian Zhihui Science & Tech Innovation Co., Ltd. Guangzhou ?

Poor long term growth as Net Sales has grown by an annual rate of -1.11% and Operating profit at 15.64% over the last 5 years

Flat results in Mar 26

NET PROFIT(HY) At CNY 59.66 MM has Grown at -87.13%
OPERATING CASH FLOW(Y) Lowest at CNY 258.28 MM
ROCE(HY) Lowest at 5.92%

With ROE of 6.87%, it has a very expensive valuation with a 2.06 Price to Book Value

Over the past year, while the stock has generated a return of -13.23%, its profits have fallen by -74.8%

Below par performance in long term as well as near term

Along with generating -13.23% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How 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 FMCG)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hongmian Zhihui Science & Tech Innovation Co., Ltd. Guangzhou for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hongmian Zhihui Science & Tech Innovation Co., Ltd. Guangzhou

-17.58%

-0.03

38.86%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.11%

EBIT Growth (5y)

15.64%

EBIT to Interest (avg)

-7.84

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.46

Sales to Capital Employed (avg)

1.12

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

8.50%

ROE (avg)

35.98%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.06

EV to EBIT

5.95

EV to EBITDA

4.78

EV to Capital Employed

2.67

EV to Sales

1.60

PEG Ratio

Dividend Yield

ROCE (Latest)

44.78%

ROE (Latest)

6.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

NET PROFIT(Q)

At CNY 47.48 MM has Grown at 217.39%

PRE-TAX PROFIT(Q)

Highest at CNY 60.35 MM

EPS(Q)

Highest at CNY 0.03

-13What is not working for the Company

NET PROFIT(HY)

At CNY 59.66 MM has Grown at -87.13%

OPERATING CASH FLOW(Y)

Lowest at CNY 258.28 MM

ROCE(HY)

Lowest at 5.92%

INTEREST COVERAGE RATIO(Q)

Lowest at 132.42

OPERATING PROFIT(Q)

Lowest at CNY 11.78 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.31 %

Here's what is working for Hongmian Zhihui Science & Tech Innovation Co., Ltd. Guangzhou

Pre-Tax Profit

At CNY 60.35 MM has Grown at 162.84%

over average net sales of the previous four periods of CNY 22.96 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 47.48 MM has Grown at 217.39%

over average net sales of the previous four periods of CNY 14.96 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 60.35 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

EPS

Highest at CNY 0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Hongmian Zhihui Science & Tech Innovation Co., Ltd. Guangzhou

Operating Cash Flow

Lowest at CNY 258.28 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest Coverage Ratio

Lowest at 132.42

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 11.78 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.31 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales