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 -24.61% and Operating profit at 15.48% over the last 5 years

Flat results in Sep 25

DEBT-EQUITY RATIO (HY) Highest at -2.88 %
DEBTORS TURNOVER RATIO(HY) Lowest at 7.47 times
RAW MATERIAL COST(Y) Grown by 106.54% (YoY)

With ROE of 28.35%, it has a expensive valuation with a 3.06 Price to Book Value

Over the past year, while the stock has generated a return of 2.05%, its profits have risen by 252.2% ; the PEG ratio of the company is 0

Underperformed the market in the last 1 year

The stock has generated a return of 2.05% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.17%

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, Medium Return

Absolute

Risk Adjusted

Volatility

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

0.29%

0.57

38.98%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-24.61%

EBIT Growth (5y)

15.48%

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)

1.25

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

3.06

EV to EBIT

48.93

EV to EBITDA

18.16

EV to Capital Employed

5.39

EV to Sales

2.49

PEG Ratio

0.04

Dividend Yield

ROCE (Latest)

11.02%

ROE (Latest)

28.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

7What is working for the Company

ROCE(HY)

Highest at 30.68%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

CASH AND EQV(HY)

Highest at CNY 2,470.91 MM

NET SALES(Q)

Highest at CNY 570.6 MM

-12What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -2.88 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.47 times

RAW MATERIAL COST(Y)

Grown by 106.54% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

PRE-TAX PROFIT(Q)

Lowest at CNY 0 MM

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

Net Sales

Highest at CNY 570.6 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 570.6 MM has Grown at 17.72%

over average net sales of the previous four periods of CNY 484.7 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 2,470.91 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

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

Pre-Tax Profit

At CNY 0 MM has Fallen at -100%

over average net sales of the previous four periods of CNY 36.65 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at -2.88 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 7.47 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Pre-Tax Profit

Lowest at CNY 0 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 106.54% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales