Huatu Cendes Co., Ltd. (300492) 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

Huatu Cendes Co., Ltd.

Why is Huatu Cendes Co., Ltd. ?

Positive results in Mar 26

ROCE(HY) Highest at 75.53%
RAW MATERIAL COST(Y) Fallen by -3.34% (YoY)
CASH AND EQV(HY) Highest at CNY 2,059.36 MM

With ROE of 93.97%, it has a expensive valuation with a 28.71 Price to Book Value

Over the past year, while the stock has generated a return of -49.26%, its profits have risen by 137.1% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 1.1

Below par performance in long term as well as near term

Along with generating -49.26% returns in the last 1 year, the stock has also underperformed 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 Huatu Cendes Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Huatu Cendes Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Huatu Cendes Co., Ltd.

-49.26%

-1.48

45.93%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

91.09%

EBIT Growth (5y)

67.93%

EBIT to Interest (avg)

10.02

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.74

Sales to Capital Employed (avg)

4.02

Tax Ratio

37.28%

Dividend Payout Ratio

48.63%

Pledged Shares

Institutional Holding

ROCE (avg)

6.25%

ROE (avg)

8.26%

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

28.71

EV to EBIT

20.02

EV to EBITDA

12.58

EV to Capital Employed

-19.30

EV to Sales

2.10

PEG Ratio

0.44

Dividend Yield

1.05%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

93.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

15What is working for the Company

ROCE(HY)

Highest at 75.53%

RAW MATERIAL COST(Y)

Fallen by -3.34% (YoY

CASH AND EQV(HY)

Highest at CNY 2,059.36 MM

PRE-TAX PROFIT(Q)

Highest at CNY 157.34 MM

NET PROFIT(Q)

Highest at CNY 121.62 MM

EPS(Q)

Highest at CNY 0.63

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 456.91 MM

INTEREST(Q)

At CNY 6.31 MM has Grown at 111.52%

INVENTORY TURNOVER RATIO(HY)

Lowest at 83.98 times

Here's what is working for Huatu Cendes Co., Ltd.

Pre-Tax Profit

Highest at CNY 157.34 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 121.62 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.63

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 2,059.36 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -3.34% (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 Huatu Cendes Co., Ltd.

Interest

At CNY 6.31 MM has Grown at 111.52%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 456.91 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Lowest at 83.98 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio