Huafon Chemical Co., Ltd. (002064) 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

Huafon Chemical Co., Ltd.

Why is Huafon Chemical Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 6.62% and Operating profit at -12.03% over the last 5 years

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at CNY 4,127.32 MM
RAW MATERIAL COST(Y) Fallen by -43.82% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at -15.27 %

With ROE of 7.24%, it has a fair valuation with a 1.82 Price to Book Value

Over the past year, while the stock has generated a return of 63.84%, its profits have fallen by -0.8%
At the current price, the company has a high dividend yield of 0.5

Market Beating performance in long term as well as near term

Along with generating 63.84% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Huafon Chemical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Huafon Chemical Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Huafon Chemical Co., Ltd.

63.84%

0.98

44.50%

China Shanghai Composite

19.22%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.62%

EBIT Growth (5y)

-12.03%

EBIT to Interest (avg)

30.65

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.10

Sales to Capital Employed (avg)

0.79

Tax Ratio

11.79%

Dividend Payout Ratio

40.07%

Pledged Shares

Institutional Holding

ROCE (avg)

20.02%

ROE (avg)

17.43%

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

1.82

EV to EBIT

21.81

EV to EBITDA

14.22

EV to Capital Employed

1.97

EV to Sales

1.90

PEG Ratio

Dividend Yield

0.49%

ROCE (Latest)

9.05%

ROE (Latest)

7.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 4,127.32 MM

RAW MATERIAL COST(Y)

Fallen by -43.82% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -15.27 %

NET SALES(Q)

Highest at CNY 6,766.72 MM

PRE-TAX PROFIT(Q)

Highest at CNY 735.2 MM

NET PROFIT(Q)

Highest at CNY 661.87 MM

EPS(Q)

Highest at CNY 0.13

-9What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.72 times

INTEREST COVERAGE RATIO(Q)

Lowest at 3,594.38

INTEREST(Q)

Highest at CNY 21.77 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.57 %

Here's what is working for Huafon Chemical Co., Ltd.

Operating Cash Flow

Highest at CNY 4,127.32 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)

Net Sales

Highest at CNY 6,766.72 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 735.2 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 661.87 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.13

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at -15.27 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -43.82% (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 Huafon Chemical Co., Ltd.

Interest

At CNY 21.77 MM has Grown at 100.41%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 3,594.38

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 3.72 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

Highest at CNY 21.77 MM

in the last five periods and Increased by 100.41% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 11.57 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales