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 0.60% and Operating profit at -7.85% over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 1,239.63 MM
NET PROFIT(HY) At CNY 460.97 MM has Grown at -29.06%
ROCE(HY) Lowest at 8.22%

With ROE of 10.04%, it has a very attractive valuation with a 2.44 Price to Book Value

Over the past year, while the stock has generated a return of -10.27%, its profits have fallen by -25.1%
At the current price, the company has a high dividend yield of 1.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -10.27% 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.

-10.38%

-1.02

18.53%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.60%

EBIT Growth (5y)

-7.85%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

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

Institutional Holding

ROCE (avg)

24.57%

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

2.44

EV to EBIT

19.02

EV to EBITDA

15.63

EV to Capital Employed

3.42

EV to Sales

5.45

PEG Ratio

Dividend Yield

1.07%

ROCE (Latest)

18.00%

ROE (Latest)

10.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

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

6What is working for the Company

NET SALES(Q)

At CNY 1,580.69 MM has Grown at 40%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

CASH AND EQV(HY)

Highest at CNY 9,264.82 MM

DEBT-EQUITY RATIO (HY)

Lowest at -31.66 %

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 1,239.63 MM

NET PROFIT(HY)

At CNY 460.97 MM has Grown at -29.06%

ROCE(HY)

Lowest at 8.22%

RAW MATERIAL COST(Y)

Grown by 9.83% (YoY

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

Net Sales

At CNY 1,580.69 MM has Grown at 40%

over average net sales of the previous four periods of CNY 1,129.08 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 9,264.82 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -31.66 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Hualan Biological Engineering, Inc.

Operating Cash Flow

Lowest at CNY 1,239.63 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Profit

At CNY 460.97 MM has Grown at -29.06%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 9.83% (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