Hubei Forbon Technology Co., Ltd. (300387) 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

Hubei Forbon Technology Co., Ltd.

Why is Hubei Forbon Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 6.33%

The company has been able to generate a Return on Capital Employed (avg) of 6.33% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 17.40% and Operating profit at 18.25% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(HY) At CNY 6.05 MM has Grown at -75.82%
OPERATING CASH FLOW(Y) Lowest at CNY 64.27 MM
INTEREST(9M) At CNY 9.23 MM has Grown at 11.55%

Below par performance in long term as well as near term

Along with generating -13.79% 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 sell?

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 Hubei Forbon Technology Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Hubei Forbon Technology Co., Ltd.

-17.74%

0.58

31.77%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.40%

EBIT Growth (5y)

18.25%

EBIT to Interest (avg)

7.13

Debt to EBITDA (avg)

0.12

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.71

Tax Ratio

19.32%

Dividend Payout Ratio

29.28%

Pledged Shares

Institutional Holding

ROCE (avg)

6.33%

ROE (avg)

5.00%

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

1.47

EV to EBIT

14.40

EV to EBITDA

11.82

EV to Capital Employed

1.48

EV to Sales

1.50

PEG Ratio

Dividend Yield

0.81%

ROCE (Latest)

10.28%

ROE (Latest)

4.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bullish

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

8What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 2,358.59

RAW MATERIAL COST(Y)

Fallen by -12.68% (YoY

CASH AND EQV(HY)

Highest at CNY 805.52 MM

DEBT-EQUITY RATIO (HY)

Lowest at -0.78 %

DEBTORS TURNOVER RATIO(HY)

Highest at 3.9 times

PRE-TAX PROFIT(Q)

At CNY 38.25 MM has Grown at 64.85%

NET PROFIT(Q)

At CNY 26.6 MM has Grown at 77.03%

-15What is not working for the Company

NET PROFIT(HY)

At CNY 6.05 MM has Grown at -75.82%

OPERATING CASH FLOW(Y)

Lowest at CNY 64.27 MM

INTEREST(9M)

At CNY 9.23 MM has Grown at 11.55%

ROCE(HY)

Lowest at 4.4%

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.11 times

Here's what is working for Hubei Forbon Technology Co., Ltd.

Interest Coverage Ratio

Highest at 2,358.59

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At CNY 38.25 MM has Grown at 64.85%

over average net sales of the previous four periods of CNY 23.2 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 26.6 MM has Grown at 77.03%

over average net sales of the previous four periods of CNY 15.02 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 805.52 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -0.78 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.9 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -12.68% (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 Hubei Forbon Technology Co., Ltd.

Interest

At CNY 9.23 MM has Grown at 11.55%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 64.27 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 5.11 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio