Why is Hongrun Construction Group Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of -13.57% and Operating profit at -19.91% over the last 5 years
2
The company has declared Negative results for the last 3 consecutive quarters
- NET PROFIT(HY) At CNY 124.72 MM has Grown at -34.5%
- NET SALES(Q) At CNY 1,350.4 MM has Fallen at -22.55%
- ROCE(HY) Lowest at 5.39%
3
With ROE of 3.79%, it has a very expensive valuation with a 2.22 Price to Book Value
- Over the past year, while the stock has generated a return of 115.84%, its profits have fallen by -56.7%
- At the current price, the company has a high dividend yield of 1
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 Construction)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hongrun Construction Group Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Hongrun Construction Group Co., Ltd.
-100.0%
3.25
51.34%
China Shanghai Composite
15.19%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
-13.57%
EBIT Growth (5y)
-19.91%
EBIT to Interest (avg)
4.02
Debt to EBITDA (avg)
0.44
Net Debt to Equity (avg)
-0.15
Sales to Capital Employed (avg)
0.91
Tax Ratio
24.07%
Dividend Payout Ratio
43.29%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
12.15%
ROE (avg)
10.36%
Valuation Key Factors 
Factor
Value
P/E Ratio
59
Industry P/E
Price to Book Value
2.22
EV to EBIT
50.34
EV to EBITDA
30.33
EV to Capital Employed
2.24
EV to Sales
1.94
PEG Ratio
NA
Dividend Yield
1.00%
ROCE (Latest)
4.44%
ROE (Latest)
3.79%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
3What is working for the Company
CASH AND EQV(HY)
Highest at CNY 6,580.7 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -13.84 %
INVENTORY TURNOVER RATIO(HY)
Highest at 3.27%
-21What is not working for the Company
NET PROFIT(HY)
At CNY 124.72 MM has Grown at -34.5%
NET SALES(Q)
At CNY 1,350.4 MM has Fallen at -22.55%
ROCE(HY)
Lowest at 5.39%
DEBTORS TURNOVER RATIO(HY)
Lowest at 0.89%
RAW MATERIAL COST(Y)
Grown by 21.42% (YoY
PRE-TAX PROFIT(Q)
Fallen at -36.12%
Here's what is working for Hongrun Construction Group Co., Ltd.
Cash and Eqv
Highest at CNY 6,580.7 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -13.84 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 3.27%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Hongrun Construction Group Co., Ltd.
Net Sales
At CNY 1,350.4 MM has Fallen at -22.55%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Net Profit
At CNY 124.72 MM has Grown at -34.5%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Debtors Turnover Ratio
Lowest at 0.89% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Pre-Tax Profit
Fallen at -36.12%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Raw Material Cost
Grown by 21.42% (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






