Huawen Media Group (000793) 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

Huawen Media Group

Why is Huawen Media Group ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -32.12% and Operating profit at 12.64% over the last 5 years
The company is Net-Debt Free
NET SALES(Q) At CNY 71.5 MM has Fallen at -19.22%
DEBT-EQUITY RATIO (HY) Highest at 3,811.25 %
RAW MATERIAL COST(Y) Grown by 111.38% (YoY)

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 -0.38%, its profits have risen by 80.4%

Below par performance in long term as well as near term

Along with generating -0.38% 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 Huawen Media Group should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is Huawen Media Group for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Huawen Media Group

-19.92%

4.68

34.46%

China Shanghai Composite

3.0%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-32.12%

EBIT Growth (5y)

12.64%

EBIT to Interest (avg)

-2.90

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

6.39

Sales to Capital Employed (avg)

29.31

Tax Ratio

1.79%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.76%

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

354.51

EV to EBIT

-217.32

EV to EBITDA

-475.87

EV to Capital Employed

10.04

EV to Sales

33.13

PEG Ratio

Dividend Yield

ROCE (Latest)

-4.62%

ROE (Latest)

-336.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

29What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 112.58 MM

NET SALES(9M)

At CNY 247.77 MM has Grown at 18.61%

ROCE(HY)

Highest at -1.54%

INVENTORY TURNOVER RATIO(HY)

Highest at 3,756.8 times

RAW MATERIAL COST(Y)

Fallen by -5.94% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 23.94 %

PRE-TAX PROFIT(Q)

Highest at CNY 95.35 MM

NET PROFIT(Q)

Highest at CNY 89.54 MM

EPS(Q)

Highest at CNY 0.04

-5What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.25 times

NET SALES(Q)

At CNY 82.09 MM has Fallen at -9.48%

Here's what is working for Huawen Media Group

Pre-Tax Profit

At CNY 95.35 MM has Grown at 455.99%

over average net sales of the previous four periods of CNY -26.78 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 89.54 MM has Grown at 552.44%

over average net sales of the previous four periods of CNY -19.79 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 3,756.8 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Cash Flow

Highest at CNY 112.58 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 95.35 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 89.54 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at 23.94 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -5.94% (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 Huawen Media Group

Net Sales

At CNY 82.09 MM has Fallen at -9.48%

over average net sales of the previous four periods of CNY 90.69 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 0.25 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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