Why is Hualan Biological Engineering, Inc. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 4.19% and Operating profit at -1.93% over the last 5 years
2
Flat results in Mar 25
- NET SALES(Q) At CNY 859.23 MM has Fallen at -20.82%
- NET PROFIT(HY) At CNY 463.43 MM has Grown at -29.35%
- ROCE(HY) Lowest at 9.57%
3
With ROE of 10.04%, it has a very attractive valuation with a 2.09 Price to Book Value
- Over the past year, while the stock has generated a return of -4.43%, its profits have fallen by -25.1%
- At the current price, the company has a high dividend yield of 1.2
4
Below par performance in long term as well as near term
- Along with generating -4.43% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to Hualan Biological Engineering, Inc. should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hualan Biological Engineering, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Hualan Biological Engineering, Inc.
-100.0%
-0.29
19.06%
China Shanghai Composite
15.19%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
4.19%
EBIT Growth (5y)
-1.93%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.21
Sales to Capital Employed (avg)
0.38
Tax Ratio
13.41%
Dividend Payout Ratio
33.56%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
24.57%
ROE (avg)
14.71%
Valuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
2.09
EV to EBIT
15.80
EV to EBITDA
12.98
EV to Capital Employed
2.84
EV to Sales
4.52
PEG Ratio
NA
Dividend Yield
1.25%
ROCE (Latest)
18.00%
ROE (Latest)
10.04%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Sideways
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
No Trend
Technical Movement
1What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -8.23% (YoY
-20What is not working for the Company
NET SALES(Q)
At CNY 859.23 MM has Fallen at -20.82%
NET PROFIT(HY)
At CNY 463.43 MM has Grown at -29.35%
ROCE(HY)
Lowest at 9.57%
INTEREST(Q)
At CNY 2.74 MM has Grown at 74.68%
INVENTORY TURNOVER RATIO(HY)
Lowest at 0.87%
Here's what is working for Hualan Biological Engineering, Inc.
Raw Material Cost
Fallen by -8.23% (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 Hualan Biological Engineering, Inc.
Net Sales
At CNY 859.23 MM has Fallen at -20.82%
over average net sales of the previous four periods of CNY 1,085.21 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Interest
At CNY 2.74 MM has Grown at 74.68%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Profit
At CNY 463.43 MM has Grown at -29.35%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
Inventory Turnover Ratio
Lowest at 0.87%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio






