ScoreWhy is Huarong Chemical Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 18.25% and Operating profit at -13.89% over the last 5 years
2
The company has declared Negative results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at CNY -20.95 MM
- ROCE(HY) Lowest at 5.27%
- DEBT-EQUITY RATIO (HY) Highest at -55.58 %
3
With ROE of 5.37%, it has a attractive valuation with a 0.71 Price to Book Value
- Over the past year, while the stock has generated a return of 39.38%, its profits have fallen by -37.4%
4
Market Beating Performance
- The stock has generated a return of 39.38% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.45%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Huarong Chemical Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Chemicals & Petrochemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Huarong Chemical Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Huarong Chemical Co., Ltd.
20.35%
1.30
76.52%
China Shanghai Composite
16.01%
1.03
14.98%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
18.25%
EBIT Growth (5y)
-13.89%
EBIT to Interest (avg)
18.82
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.66
Sales to Capital Employed (avg)
0.54
Tax Ratio
10.95%
Dividend Payout Ratio
81.18%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
17.67%
ROE (avg)
6.84%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
0.71
EV to EBIT
4.67
EV to EBITDA
2.66
EV to Capital Employed
0.34
EV to Sales
0.17
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
7.19%
ROE (Latest)
5.37%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 2,212.56
NET SALES(Q)
Highest at CNY 494.38 MM
-12What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY -20.95 MM
ROCE(HY)
Lowest at 5.27%
DEBT-EQUITY RATIO
(HY)
Highest at -55.58 %
RAW MATERIAL COST(Y)
Grown by 42.81% (YoY
OPERATING PROFIT(Q)
Lowest at CNY 18.4 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 3.72 %
Here's what is working for Huarong Chemical Co., Ltd.
Net Sales
At CNY 494.38 MM has Grown at 35.71%
over average net sales of the previous four periods of CNY 364.29 MMMOJO Watch
Near term sales trend is very positive
Net Sales (CNY MM)
Interest Coverage Ratio
Highest at 2,212.56
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales
Highest at CNY 494.38 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Here's what is not working for Huarong Chemical Co., Ltd.
Operating Cash Flow
Lowest at CNY -20.95 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Debt-Equity Ratio
Highest at -55.58 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Operating Profit
Lowest at CNY 18.4 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 3.72 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Raw Material Cost
Grown by 42.81% (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
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