Hongta Securities Co., Ltd. (601236) 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

Hongta Securities Co., Ltd.

Why is Hongta Securities Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 4.78%

Poor long term growth as Net Sales has grown by an annual rate of -12.54% and Operating profit at -5.34%
The company has been able to generate a Return on Equity (avg) of 4.78% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -12.54% and Operating profit at -5.34%

With ROE of 3.91%, it has a expensive valuation with a 1.62 Price to Book Value

Over the past year, while the stock has generated a return of 2.28%, its profits have risen by 111.2% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 1.7

Underperformed the market in the last 1 year

The stock has generated a return of 2.28% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 Capital Markets)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hongta Securities Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Hongta Securities Co., Ltd.

-21.4%

1.02

24.91%

China Shanghai Composite

19.22%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-18.04%

EBIT Growth (5y)

-4.13%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

81.21%

Pledged Shares

Institutional Holding

ROCE (avg)

7.45%

ROE (avg)

4.78%

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

1.22

EV to EBIT

22.47

EV to EBITDA

19.03

EV to Capital Employed

1.26

EV to Sales

10.00

PEG Ratio

8.28

Dividend Yield

3.16%

ROCE (Latest)

5.60%

ROE (Latest)

3.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

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

6What is working for the Company

ROCE(HY)

Highest at 4.43%

RAW MATERIAL COST(Y)

Fallen by -13.28% (YoY

NET SALES(Q)

Highest at CNY 864.69 MM

-5What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 86.55 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.03 times

PRE-TAX PROFIT(Q)

Lowest at CNY 243.87 MM

NET PROFIT(Q)

At CNY 195.95 MM has Fallen at -35.41%

Here's what is working for Hongta Securities Co., Ltd.

Net Sales

At CNY 864.69 MM has Grown at 35.27%

over average net sales of the previous four periods of CNY 639.23 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

Highest at CNY 864.69 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -13.28% (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 Hongta Securities Co., Ltd.

Pre-Tax Profit

Lowest at CNY 243.87 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 243.87 MM has Fallen at -37.84%

over average net sales of the previous four periods of CNY 392.34 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 195.95 MM has Fallen at -35.41%

over average net sales of the previous four periods of CNY 303.39 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 86.55 %

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 1.03 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio