Hualan Biological Engineering, Inc. (002007) 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

Hualan Biological Engineering, Inc.

Why is Hualan Biological Engineering, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of -2.01% and Operating profit at -12.11% over the last 5 years

Negative results in Mar 26

NET PROFIT(9M) At CNY 649.3 MM has Grown at -31.17%
OPERATING CASH FLOW(Y) Lowest at CNY 1,127.25 MM
ROCE(HY) Lowest at 7.18%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -18.89% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

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.

-16.93%

-1.32

20.97%

China Shanghai Composite

3.0%

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)

-2.01%

EBIT Growth (5y)

-12.11%

EBIT to Interest (avg)

96.81

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.38

Tax Ratio

13.80%

Dividend Payout Ratio

194.17%

Pledged Shares

Institutional Holding

ROCE (avg)

17.86%

ROE (avg)

14.71%

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

1.89

EV to EBIT

17.87

EV to EBITDA

14.85

EV to Capital Employed

2.28

EV to Sales

4.14

PEG Ratio

Dividend Yield

7.10%

ROCE (Latest)

12.77%

ROE (Latest)

7.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly 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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,247.67 MM

-21What is not working for the Company

NET SALES(Q)

At CNY 804.53 MM has Fallen at -28.32%

ROCE(HY)

Lowest at 7.03%

RAW MATERIAL COST(Y)

Grown by 15.74% (YoY

CASH AND EQV(HY)

Lowest at CNY 7,820.04 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.82 times

OPERATING PROFIT(Q)

Lowest at CNY 186.97 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 23.24 %

PRE-TAX PROFIT(Q)

Lowest at CNY 176.86 MM

NET PROFIT(Q)

Lowest at CNY 147.62 MM

EPS(Q)

Lowest at CNY 0.08

Here's what is working for Hualan Biological Engineering, Inc.

Operating Cash Flow

Highest at CNY 1,247.67 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 Hualan Biological Engineering, Inc.

Net Sales

At CNY 804.53 MM has Fallen at -28.32%

over average net sales of the previous four periods of CNY 1,122.38 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 186.97 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 23.24 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 176.86 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 176.86 MM has Fallen at -38.07%

over average net sales of the previous four periods of CNY 285.58 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 147.62 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

At CNY 147.62 MM has Fallen at -30.19%

over average net sales of the previous four periods of CNY 211.46 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.08

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 7,820.04 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 0.82 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 15.74% (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 0.33 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income

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