ScoreWhy is Hubei Huarong Holding Co., Ltd. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 4.33%
- Poor long term growth as Net Sales has grown by an annual rate of 7.64% and Operating profit at -171.65% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
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 10.06%, its profits have risen by 61%
3
Underperformed the market in the last 1 year
- The stock has generated a return of 10.06% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Hubei Huarong Holding Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hubei Huarong Holding Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Hubei Huarong Holding Co., Ltd.
-96.43%
0.74
54.40%
China Shanghai Composite
21.43%
1.58
14.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.25%
EBIT Growth (5y)
11.40%
EBIT to Interest (avg)
-1.55
Debt to EBITDA (avg)
4.68
Net Debt to Equity (avg)
2.70
Sales to Capital Employed (avg)
2.21
Tax Ratio
17.08%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.33%
ROE (avg)
8.25%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
4.64
EV to EBIT
8.30
EV to EBITDA
5.53
EV to Capital Employed
2.57
EV to Sales
0.42
PEG Ratio
0.03
Dividend Yield
NA
ROCE (Latest)
30.92%
ROE (Latest)
50.29%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend41What is working for the Company
ROCE(HY)
Highest at 64.2%
RAW MATERIAL COST(Y)
Fallen by -32.48% (YoY
CASH AND EQV(HY)
Highest at CNY 81.18 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 7.62 times
DEBTORS TURNOVER RATIO(HY)
Highest at 1.62 times
NET SALES(Q)
Highest at CNY 60.15 MM
OPERATING PROFIT(Q)
Highest at CNY 8.68 MM
OPERATING PROFIT MARGIN(Q)
Highest at 14.43 %
PRE-TAX PROFIT(Q)
Highest at CNY 7.67 MM
NET PROFIT(Q)
Highest at CNY 7.33 MM
EPS(Q)
Highest at CNY 0.04
-13What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY -30.6 MM
INTEREST(Q)
Highest at CNY 1.1 MM
Here's what is working for Hubei Huarong Holding Co., Ltd.
Net Sales
At CNY 60.15 MM has Grown at 200.14%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely positive
Net Sales (CNY MM)
Pre-Tax Profit
At CNY 7.67 MM has Grown at 1,233.09%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 7.33 MM has Grown at 807.1%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Net Sales
Highest at CNY 60.15 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Operating Profit
Highest at CNY 8.68 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CNY MM)
Operating Profit Margin
Highest at 14.43 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at CNY 7.67 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 7.33 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.04
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Cash and Eqv
Highest at CNY 81.18 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 7.62 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 1.62 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -32.48% (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 Huarong Holding Co., Ltd.
Interest
At CNY 1.1 MM has Grown at 31.16%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Cash Flow
Lowest at CNY -30.6 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Interest
Highest at CNY 1.1 MM
in the last five periods and Increased by 31.16% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
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