Horizon Construction Development Ltd. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Far East Horizon Ltd.

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Genertec Universal Medical Group Co., Ltd.

SY Holdings Group Ltd.

Sun Hung Kai & Co. Ltd.

Shandong Hi-Speed Holdings Group Ltd.

Allied Group Ltd.

CITIC Ltd.

Horizon Construction Development Ltd.

Hao Tian International Construction Investment Group Ltd.

Why is Horizon Construction Development Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 7.24%

High Debt Company with a Debt to Equity ratio (avg) at times

Negative results in Jun 25

RAW MATERIAL COST(Y) Grown by 37.8% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 164.78 %
NET SALES(Q) Lowest at HKD 4,672.62 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -20.28%, its profits have fallen by -34.7%

Below par performance in long term as well as near term

Along with generating -20.28% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in the last 3 years, 1 year and 3 months

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 Finance)

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

Is Horizon Construction Development Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Horizon Construction Development Ltd.

-20.28%

-1.01

41.19%

Hang Seng Hong Kong

27.36%

1.06

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.60%

EBIT Growth (5y)

-9.16%

EBIT to Interest (avg)

2.19

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

25.31%

Dividend Payout Ratio

31.05%

Pledged Shares

Institutional Holding

ROCE (avg)

7.24%

ROE (avg)

8.92%

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

0.35

EV to EBIT

15.73

EV to EBITDA

5.15

EV to Capital Employed

0.75

EV to Sales

2.03

PEG Ratio

Dividend Yield

ROCE (Latest)

4.76%

ROE (Latest)

14.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-10What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 37.8% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 164.78 %

NET SALES(Q)

Lowest at HKD 4,672.62 MM

OPERATING PROFIT(Q)

Lowest at HKD 1,997.47 MM

PRE-TAX PROFIT(Q)

Lowest at HKD 25.25 MM

NET PROFIT(Q)

Lowest at HKD 17.83 MM

EPS(Q)

Lowest at HKD 0.01

Here's what is working for Horizon Construction Development Ltd.

Depreciation

Highest at HKD 1,634.01 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Depreciation

At HKD 1,634.01 MM has Grown at 6.43%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for Horizon Construction Development Ltd.

Net Sales

Lowest at HKD 4,672.62 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Operating Profit

Lowest at HKD 1,997.47 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Pre-Tax Profit

Lowest at HKD 25.25 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Pre-Tax Profit

Fallen at -94.22%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 17.83 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Net Profit

Fallen at -93.81%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD 0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Debt-Equity Ratio

Highest at 164.78 %

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

Raw Material Cost

Grown by 37.8% (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

Non Operating Income

Highest at HKD 1.71 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income