Hongrun Construction Group Co., Ltd. (002062) 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

Hongrun Construction Group Co., Ltd.

Why is Hongrun Construction Group Co., Ltd. ?

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

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%

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 74.88%, its profits have fallen by -22.4%
At the current price, the company has a high dividend yield of 1.5

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 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.

69.08%

1.79

55.70%

China Shanghai Composite

20.18%

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)

-13.28%

EBIT Growth (5y)

-7.53%

EBIT to Interest (avg)

4.02

Debt to EBITDA (avg)

0.44

Net Debt to Equity (avg)

-0.15

Sales to Capital Employed (avg)

0.82

Tax Ratio

24.07%

Dividend Payout Ratio

43.48%

Pledged Shares

Institutional Holding

ROCE (avg)

12.15%

ROE (avg)

10.36%

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

1.51

EV to EBIT

20.00

EV to EBITDA

14.81

EV to Capital Employed

1.63

EV to Sales

1.17

PEG Ratio

Dividend Yield

1.47%

ROCE (Latest)

8.16%

ROE (Latest)

4.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,118.19 MM

RAW MATERIAL COST(Y)

Fallen by -8.23% (YoY

CASH AND EQV(HY)

Highest at CNY 6,781.34 MM

DEBT-EQUITY RATIO (HY)

Lowest at -16.97 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4.59 times

-6What is not working for the Company

ROCE(HY)

Lowest at 5.23%

NET SALES(Q)

Lowest at CNY 1,227.99 MM

PRE-TAX PROFIT(Q)

Fallen at -27.84%

Here's what is working for Hongrun Construction Group Co., Ltd.

Operating Cash Flow

Highest at CNY 1,118.19 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 6,781.34 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -16.97 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 4.59 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -8.23% (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 Hongrun Construction Group Co., Ltd.

Net Sales

Lowest at CNY 1,227.99 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Pre-Tax Profit

Fallen at -27.84%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)