Huafon Microfibre (Shanghai) Co., Ltd. (300180) 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 Microfibre (Shanghai) Co., Ltd.

Why is Huafon Microfibre (Shanghai) Co., Ltd. ?

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)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 0.44% and Operating profit at -154.05% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 0.77% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 0.44% and Operating profit at -154.05% over the last 5 years

With a fall in Net Sales of -13.04%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 4 consecutive quarters
The company has declared negative results in Jun 25 after 5 consecutive negative quarters
PRE-TAX PROFIT(Q) At CNY 0.63 MM has Fallen at -97.07%
INTEREST(Q) At CNY 3.7 MM has Grown at inf%
OPERATING PROFIT MARGIN(Q) Lowest at -0.5 %

With ROE of 0.94%, it has a very expensive valuation with a 1.43 Price to Book Value

Over the past year, while the stock has generated a return of -48.57%, its profits have fallen by -75.8%
At the current price, the company has a high dividend yield of 0.3

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 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, Medium Return

Absolute

Risk Adjusted

Volatility

Huafon Microfibre (Shanghai) Co., Ltd.

-53.1%

0.79

39.53%

China Shanghai Composite

20.18%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.44%

EBIT Growth (5y)

-154.05%

EBIT to Interest (avg)

-0.84

Debt to EBITDA (avg)

15.48

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

0.73

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

13.19%

Pledged Shares

Institutional Holding

ROCE (avg)

0.78%

ROE (avg)

0.77%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

153

Industry P/E

Price to Book Value

1.43

EV to EBIT

-409.17

EV to EBITDA

21.44

EV to Capital Employed

1.38

EV to Sales

1.89

PEG Ratio

Dividend Yield

0.26%

ROCE (Latest)

-0.34%

ROE (Latest)

0.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 710.82 MM

-31What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 0.63 MM has Fallen at -97.07%

INTEREST(Q)

At CNY 3.7 MM has Grown at inf%

OPERATING PROFIT MARGIN(Q)

Lowest at -0.5 %

RAW MATERIAL COST(Y)

Grown by 20.55% (YoY

CASH AND EQV(HY)

Lowest at CNY 489.51 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.31 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.67 times

NET SALES(Q)

Lowest at CNY 880.23 MM

OPERATING PROFIT(Q)

Lowest at CNY -4.42 MM

NET PROFIT(Q)

Lowest at CNY -1.93 MM

Here's what is working for Huafon Microfibre (Shanghai) Co., Ltd.

Operating Cash Flow

Highest at CNY 710.82 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)

Here's what is not working for Huafon Microfibre (Shanghai) Co., Ltd.

Pre-Tax Profit

At CNY 0.63 MM has Fallen at -97.07%

over average net sales of the previous four periods of CNY 21.57 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -1.93 MM has Fallen at -107.33%

over average net sales of the previous four periods of CNY 26.35 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 880.23 MM has Fallen at -11.94%

over average net sales of the previous four periods of CNY 999.6 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 3.7 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at -0.5 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Sales

Lowest at CNY 880.23 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -4.42 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Net Profit

Lowest at CNY -1.93 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Cash and Eqv

Lowest at CNY 489.51 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 4.31 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.67 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 20.55% (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 CNY 13.85 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income