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Huarong Chemical Co., Ltd.

  • Market Cap: Micro Cap
  • Industry: Chemicals & Petrochemicals
  • ISIN: CNE1000058V4
CNY
10.03
-0.09 (-0.89%)

Sep 24

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Huarong Chemical Co., Ltd.

Why is Huarong Chemical Co., Ltd. ?

1
Poor long term growth as Net Sales has grown by an annual rate of 28.28% and Operating profit at -8.33% over the last 5 years
2
Negative results in Mar 26
  • OPERATING CASH FLOW(Y) Lowest at CNY -28.46 MM
  • NET PROFIT(HY) At CNY 36.8 MM has Grown at -30.38%
  • ROCE(HY) Lowest at 4.21%
3
With ROE of 4.22%, it has a attractive valuation with a 0.72 Price to Book Value
  • Over the past year, while the stock has generated a return of 18.58%, its profits have fallen by -24.9%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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 Chemicals & Petrochemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Huarong Chemical Co., Ltd. for you?

High Risk, High Return

Absolute
Risk Adjusted
Volatility
Huarong Chemical Co., Ltd.
-12.25%
1.50
63.54%
China Shanghai Composite
0.9%
1.20
14.07%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
28.28%
EBIT Growth (5y)
-8.33%
EBIT to Interest (avg)
15.50
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.66
Sales to Capital Employed (avg)
0.64
Tax Ratio
13.94%
Dividend Payout Ratio
93.58%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.61%
ROE (avg)
6.84%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
0.75
EV to EBIT
8.10
EV to EBITDA
5.24
EV to Capital Employed
0.52
EV to Sales
0.26
PEG Ratio
NA
Dividend Yield
0.86%
ROCE (Latest)
6.40%
ROE (Latest)
4.22%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company
OPERATING PROFIT MARGIN(Q)

Highest at 8.88 %

-25What is not working for the Company
OPERATING CASH FLOW(Y)

Lowest at CNY -15.47 MM

ROCE(HY)

Lowest at 4.09%

DEBT-EQUITY RATIO (HY)

Highest at -38.59 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 10.57 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.51 times

NET SALES(Q)

Lowest at CNY 268.59 MM

PRE-TAX PROFIT(Q)

Lowest at CNY 15.55 MM

NET PROFIT(Q)

Lowest at CNY 12.04 MM

EPS(Q)

Lowest at CNY 0.03

Here's what is working for Huarong Chemical Co., Ltd.

Operating Profit Margin
Highest at 8.88 %
in the last five periods
MOJO Watch
Company's profit margin has improved

Operating Profit to Sales

Here's what is not working for Huarong Chemical Co., Ltd.

Net Sales
At CNY 268.59 MM has Fallen at -39.9%
over average net sales of the previous four periods of CNY 446.9 MM
MOJO Watch
Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow
Lowest at CNY -15.47 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)

Debt-Equity Ratio
Highest at -38.59 % and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales
Lowest at CNY 268.59 MM
in the last five periods
MOJO Watch
Near term sales trend is negative

Net Sales (CNY MM)

Pre-Tax Profit
Lowest at CNY 15.55 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 15.55 MM has Fallen at -28.38%
over average net sales of the previous four periods of CNY 21.72 MM
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit
Lowest at CNY 12.04 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit
At CNY 12.04 MM has Fallen at -34.54%
over average net sales of the previous four periods of CNY 18.4 MM
MOJO Watch
Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS
Lowest at CNY 0.03
in the last five periods
MOJO Watch
Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio
Lowest at 10.57 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio
Lowest at 4.51 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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