ScoreWhy is Huafon Microfibre (Shanghai) Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 0.78%
- The company has been able to generate a Return on Capital Employed (avg) of 0.78% signifying low profitability per unit of total capital (equity and debt)
2
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of 7.92% and Operating profit at -13.44% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 0.77% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 7.92% and Operating profit at -13.44% over the last 5 years
4
With a fall in Net Sales of -13.07%, the company declared Very Negative results in Mar 25
- The company has declared negative results in Jan 70 after 5 consecutive negative quarters
- NET SALES(Q) Lowest at CNY 1,044.96 MM
- INTEREST(Q) At CNY 9.11 MM has Grown at 363.71%
- INTEREST COVERAGE RATIO(Q) Lowest at 559.87
5
With ROE of 3.13%, it has a very expensive valuation with a 2.29 Price to Book Value
- Over the past year, while the stock has generated a return of -16.80%, its profits have risen by 198.5% ; the PEG ratio of the company is 0.4
- At the current price, the company has a high dividend yield of 0.1
Real-Time Research ReportHow 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 Garments & Apparels)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Huafon Microfibre (Shanghai) Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Huafon Microfibre (Shanghai) Co., Ltd.
-100.0%
2.01
56.84%
China Shanghai Composite
15.19%
1.01
15.10%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.92%
EBIT Growth (5y)
-13.44%
EBIT to Interest (avg)
-0.84
Debt to EBITDA (avg)
15.48
Net Debt to Equity (avg)
0.23
Sales to Capital Employed (avg)
0.69
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
12.41%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0.78%
ROE (avg)
0.77%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
73
Industry P/E
Price to Book Value
2.29
EV to EBIT
122.92
EV to EBITDA
20.26
EV to Capital Employed
2.10
EV to Sales
2.80
PEG Ratio
0.37
Dividend Yield
0.08%
ROCE (Latest)
1.70%
ROE (Latest)
3.13%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend21What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 689.89 MM
ROCE(HY)
Highest at 2.37%
RAW MATERIAL COST(Y)
Fallen by -42.25% (YoY
PRE-TAX PROFIT(Q)
Highest at CNY 61.34 MM
NET PROFIT(Q)
Highest at CNY 62.01 MM
EPS(Q)
Highest at CNY 0.04
-13What is not working for the Company
NET SALES(Q)
Lowest at CNY 1,044.96 MM
INTEREST(Q)
At CNY 9.11 MM has Grown at 363.71%
INTEREST COVERAGE RATIO(Q)
Lowest at 559.87
OPERATING PROFIT(Q)
Lowest at CNY 50.98 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 4.88 %
Here's what is working for Huafon Microfibre (Shanghai) Co., Ltd.
Operating Cash Flow
Highest at CNY 689.89 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Pre-Tax Profit
Highest at CNY 61.34 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Pre-Tax Profit
At CNY 61.34 MM has Grown at 78.36%
over average net sales of the previous four periods of CNY 34.39 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 62.01 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Net Profit
At CNY 62.01 MM has Grown at 76.09%
over average net sales of the previous four periods of CNY 35.21 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.04
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Raw Material Cost
Fallen by -42.25% (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 Microfibre (Shanghai) Co., Ltd.
Net Sales
Lowest at CNY 1,044.96 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term sales trend is very negative
Net Sales (CNY MM)
Interest
At CNY 9.11 MM has Grown at 363.71%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Interest Coverage Ratio
Lowest at 559.87
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales
At CNY 1,044.96 MM has Fallen at -8.06%
over average net sales of the previous four periods of CNY 1,136.55 MMMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY 50.98 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 4.88 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
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