Why is Hualan Biological Engineering, Inc. ?
1
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
2
Flat 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%
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -16.56% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
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 Pharmaceuticals & Biotechnology)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hualan Biological Engineering, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Hualan Biological Engineering, Inc.
-18.55%
-1.42
19.21%
China Shanghai Composite
21.43%
1.55
13.83%
Quality key factors
Factor
Value
Sales Growth (5y)
-2.01%
EBIT Growth (5y)
-12.11%
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
194.17%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
24.57%
ROE (avg)
14.71%
Valuation Key Factors 
Factor
Value
P/E Ratio
27
Industry P/E
Price to Book Value
2.10
EV to EBIT
20.21
EV to EBITDA
16.80
EV to Capital Employed
2.58
EV to Sales
4.68
PEG Ratio
NA
Dividend Yield
4.48%
ROCE (Latest)
12.77%
ROE (Latest)
7.74%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
2What is working for the Company
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
-13What is not working for the Company
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%
CASH AND EQV(HY)
Lowest at CNY 7,884.85 MM
INVENTORY TURNOVER RATIO(HY)
Lowest at 0.85 times
NET SALES(Q)
Lowest at CNY 762.11 MM
Here's what is not working for Hualan Biological Engineering, Inc.
Net Sales
At CNY 762.11 MM has Fallen at -33.54%
over average net sales of the previous four periods of CNY 1,146.66 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Net Profit
At CNY 649.3 MM has Grown at -31.17%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Operating Cash Flow
Lowest at CNY 1,127.25 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Net Sales
Lowest at CNY 762.11 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Cash and Eqv
Lowest at CNY 7,884.85 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Inventory Turnover Ratio
Lowest at 0.85 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio






