Huabao Flavours & Fragrances Co., Ltd. (300741) 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

Huabao Flavours & Fragrances Co., Ltd.

Why is Huabao Flavours & Fragrances Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -9.50% and Operating profit at -143.00% over the last 5 years

The company has declared Negative results for the last 18 consecutive quarters

NET PROFIT(9M) At CNY 106.76 MM has Grown at -54.36%
OPERATING CASH FLOW(Y) Lowest at CNY 408.53 MM
NET SALES(9M) At CNY 1,002.09 MM has Grown at -9.93%

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 -3.02%, its profits have fallen by -79.7%
At the current price, the company has a high dividend yield of 0.9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.02% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Specialty Chemicals)

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

Is Huabao Flavours & Fragrances Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Huabao Flavours & Fragrances Co., Ltd.

-7.28%

0.21

40.75%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-9.50%

EBIT Growth (5y)

-143.00%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.68

Sales to Capital Employed (avg)

0.20

Tax Ratio

3.26%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

21.08%

ROE (avg)

7.91%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

233

Industry P/E

Price to Book Value

1.72

EV to EBIT

-429.06

EV to EBITDA

118.43

EV to Capital Employed

3.10

EV to Sales

5.66

PEG Ratio

Dividend Yield

0.89%

ROCE (Latest)

-0.72%

ROE (Latest)

0.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly 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

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 63.13%

DEBT-EQUITY RATIO (HY)

Lowest at -67.71 %

DIVIDEND PER SHARE(HY)

Highest at CNY 2.8

-23What is not working for the Company

NET PROFIT(9M)

At CNY 106.76 MM has Grown at -54.36%

OPERATING CASH FLOW(Y)

Lowest at CNY 408.53 MM

NET SALES(9M)

At CNY 1,002.09 MM has Grown at -9.93%

ROCE(HY)

Lowest at -4.59%

RAW MATERIAL COST(Y)

Grown by 6.33% (YoY

CASH AND EQV(HY)

Lowest at CNY 9,505.88 MM

PRE-TAX PROFIT(Q)

Fallen at -26.23%

Here's what is working for Huabao Flavours & Fragrances Co., Ltd.

Debt-Equity Ratio

Lowest at -67.71 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend per share

Highest at CNY 2.8

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 63.13%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Huabao Flavours & Fragrances Co., Ltd.

Net Sales

At CNY 594.94 MM has Grown at -18.85%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 408.53 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Fallen at -26.23%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -32.91%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Cash and Eqv

Lowest at CNY 9,505.88 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 6.33% (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