Why is Hongrun Construction Group Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of -13.28% and Operating profit at -7.53% over the last 5 years
2
Flat results in Mar 26
- ROCE(HY) Lowest at 5.23%
- NET SALES(Q) Lowest at CNY 1,227.99 MM
- PRE-TAX PROFIT(Q) Fallen at -27.84%
3
With ROE of 4.46%, it has a very expensive valuation with a 1.51 Price to Book Value
- Over the past year, while the stock has generated a return of 63.90%, its profits have fallen by -22.4%
- At the current price, the company has a high dividend yield of 1.5
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.
-14.08%
1.98
56.53%
China Shanghai Composite
3.0%
1.20
14.07%
Quality key factors
Factor
Value
Sales Growth (5y)
-13.28%
EBIT Growth (5y)
-7.53%
EBIT to Interest (avg)
4.39
Debt to EBITDA (avg)
0.20
Net Debt to Equity (avg)
-0.15
Sales to Capital Employed (avg)
0.82
Tax Ratio
26.89%
Dividend Payout Ratio
43.48%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.57%
ROE (avg)
10.36%
Valuation Key Factors 
Factor
Value
P/E Ratio
42
Industry P/E
Price to Book Value
1.87
EV to EBIT
25.37
EV to EBITDA
18.79
EV to Capital Employed
2.07
EV to Sales
1.48
PEG Ratio
NA
Dividend Yield
1.19%
ROCE (Latest)
8.16%
ROE (Latest)
4.46%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 1,378.19 MM
PRE-TAX PROFIT(Q)
At CNY 56.26 MM has Grown at 168.9%
CASH AND EQV(HY)
Highest at CNY 6,618.88 MM
-9What is not working for the Company
ROCE(HY)
Lowest at 5.04%
NET SALES(Q)
At CNY 1,246.99 MM has Fallen at -17.43%
RAW MATERIAL COST(Y)
Grown by 9.73% (YoY
Here's what is working for Hongrun Construction Group Co., Ltd.
Operating Cash Flow
Highest at CNY 1,378.19 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 (CNY MM)
Pre-Tax Profit
At CNY 56.26 MM has Grown at 168.9%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Cash and Eqv
Highest at CNY 6,618.88 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Hongrun Construction Group Co., Ltd.
Net Sales
At CNY 1,246.99 MM has Fallen at -17.43%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (CNY MM)
Raw Material Cost
Grown by 9.73% (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
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