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

Flat results in Mar 26

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

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 53.68%, its profits have fallen by -0.8%
At the current price, the company has a high dividend yield of 0.5

Market Beating Performance

The stock has generated a return of 53.68% in the last 1 year, much higher than market (China Shanghai Composite) returns of 16.83%

Real-Time Research Report

Verdict Report

How much should you buy?

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.

58.5%

0.85

45.78%

China Shanghai Composite

8.25%

1.20

14.07%

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)

31.91

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.10

Sales to Capital Employed (avg)

0.79

Tax Ratio

15.54%

Dividend Payout Ratio

40.07%

Pledged Shares

Institutional Holding

ROCE (avg)

14.64%

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

1.85

EV to EBIT

22.14

EV to EBITDA

14.43

EV to Capital Employed

2.00

EV to Sales

1.92

PEG Ratio

Dividend Yield

1.44%

ROCE (Latest)

9.05%

ROE (Latest)

7.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

OBV

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

29What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 4,305.37 MM

NET SALES(Q)

Highest at CNY 7,399.9 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

OPERATING PROFIT(Q)

Highest at CNY 1,901.15 MM

RAW MATERIAL COST(Y)

Fallen by -85.65% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -18.6 %

OPERATING PROFIT MARGIN(Q)

Highest at 25.69 %

PRE-TAX PROFIT(Q)

Highest at CNY 1,563.6 MM

NET PROFIT(Q)

Highest at CNY 1,306.83 MM

EPS(Q)

Highest at CNY 0.26

-2What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.51 times

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

Operating Cash Flow

Highest at CNY 4,305.37 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 7,399.9 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 1,901.15 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (CNY MM)

Pre-Tax Profit

At CNY 1,563.6 MM has Grown at 176.93%

over average net sales of the previous four periods of CNY 564.61 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 1,306.83 MM has Grown at 160.09%

over average net sales of the previous four periods of CNY 502.45 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 7,399.9 MM has Grown at 20.07%

over average net sales of the previous four periods of CNY 6,162.78 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit Margin

Highest at 25.69 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 1,563.6 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 1,306.83 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.26

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at -18.6 %

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 -85.65% (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.

Inventory Turnover Ratio

Lowest at 5.51 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio