Hualan Group Co., Ltd. () 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 Group Co., Ltd.

Why is Hualan Group Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -8.58% and Operating profit at -24.24% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.31% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -8.58% and Operating profit at -24.24% over the last 5 years

The company has declared positive results in Jan 70 after 13 consecutive negative quarters

OPERATING CASH FLOW(Y) Highest at CNY 184.48 MM
ROCE(HY) Highest at 2.07%
NET SALES(Q) At CNY 177.18 MM has Grown at 57.3%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 100.98%, its profits have fallen by -192.5%

Market Beating performance in long term as well as near term

Along with generating 100.98% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hualan Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Hualan Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hualan Group Co., Ltd.

100.98%

4.26

59.49%

China Shanghai Composite

25.09%

1.94

12.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.58%

EBIT Growth (5y)

-24.24%

EBIT to Interest (avg)

7.52

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.55

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

112.96%

ROE (avg)

4.31%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.61

EV to EBIT

-1809.18

EV to EBITDA

53.41

EV to Capital Employed

3.01

EV to Sales

3.64

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.17%

ROE (Latest)

-1.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

37What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 184.48 MM

ROCE(HY)

Highest at 2.07%

NET SALES(Q)

At CNY 177.18 MM has Grown at 57.3%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -7.54% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 29.02 times

OPERATING PROFIT(Q)

Highest at CNY 37.41 MM

OPERATING PROFIT MARGIN(Q)

Highest at 21.11 %

PRE-TAX PROFIT(Q)

Highest at CNY 33.41 MM

NET PROFIT(Q)

Highest at CNY 27.86 MM

EPS(Q)

Highest at CNY 0.19

-8What is not working for the Company

INTEREST(HY)

At CNY 11.08 MM has Grown at 84.39%

Here's what is working for Hualan Group Co., Ltd.

Pre-Tax Profit

At CNY 33.41 MM has Grown at 1,186.31%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 27.86 MM has Grown at 1,331.27%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 184.48 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)

Net Sales

At CNY 177.18 MM has Grown at 57.3%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 37.41 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 21.11 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 33.41 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 27.86 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.19

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 29.02 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -7.54% (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 Group Co., Ltd.

Interest

At CNY 11.08 MM has Grown at 84.39%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)