ScoreWhy is Hongmian Zhihui Science & Tech Innovation Co., Ltd. Guangzhou ?
1
Poor long term growth as Net Sales has grown by an annual rate of -27.94% and Operating profit at -0.68% over the last 5 years
2
Negative results in Mar 25
- NET SALES(9M) At CNY 1,420.05 MM has Grown at -22.18%
- DEBT-EQUITY RATIO (HY) Highest at -10.13 %
- INTEREST COVERAGE RATIO(Q) Lowest at 301.29
3
With ROE of 28.35%, it has a expensive valuation with a 2.31 Price to Book Value
- Over the past year, while the stock has generated a return of -3.72%, its profits have risen by 252.2% ; the PEG ratio of the company is 0
4
Below par performance in long term as well as near term
- Along with generating -3.72% 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 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 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?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Hongmian Zhihui Science & Tech Innovation Co., Ltd. Guangzhou
2.67%
0.55
32.74%
China Shanghai Composite
14.77%
1.01
15.10%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-27.94%
EBIT Growth (5y)
-0.68%
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)
1.28
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.50%
ROE (avg)
35.98%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
2.31
EV to EBIT
34.41
EV to EBITDA
12.77
EV to Capital Employed
3.79
EV to Sales
1.75
PEG Ratio
0.03
Dividend Yield
NA
ROCE (Latest)
11.02%
ROE (Latest)
28.35%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
NET PROFIT(HY)
Higher at CNY 463.15 MM
ROCE(HY)
Highest at 30.31%
RAW MATERIAL COST(Y)
Fallen by -17.69% (YoY
-19What is not working for the Company
NET SALES(9M)
At CNY 1,420.05 MM has Grown at -22.18%
DEBT-EQUITY RATIO
(HY)
Highest at -10.13 %
INTEREST COVERAGE RATIO(Q)
Lowest at 301.29
DEBTORS TURNOVER RATIO(HY)
Lowest at 7.52%
INTEREST(Q)
Highest at CNY 9.48 MM
OPERATING PROFIT(Q)
Lowest at CNY 28.55 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 5.91 %
PRE-TAX PROFIT(Q)
Lowest at CNY 25.78 MM
NET PROFIT(Q)
Lowest at CNY 11.71 MM
EPS(Q)
Lowest at CNY 0.01
Here's what is working for Hongmian Zhihui Science & Tech Innovation Co., Ltd. Guangzhou
Raw Material Cost
Fallen by -17.69% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Hongmian Zhihui Science & Tech Innovation Co., Ltd. Guangzhou
Net Sales
At CNY 1,420.05 MM has Grown at -22.18%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (CNY MM)
Net Profit
At CNY 11.71 MM has Fallen at -90.87%
over average net sales of the previous four periods of CNY 128.26 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Interest Coverage Ratio
Lowest at 301.29
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Debt-Equity Ratio
Highest at -10.13 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Interest
Highest at CNY 9.48 MM
in the last five periods and Increased by 7.09% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Profit
Lowest at CNY 28.55 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 5.91 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CNY 25.78 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Pre-Tax Profit
At CNY 25.78 MM has Fallen at -31.47%
over average net sales of the previous four periods of CNY 37.62 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Net Profit
Lowest at CNY 11.71 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
EPS
Lowest at CNY 0.01
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)
Debtors Turnover Ratio
Lowest at 7.52%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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