Hubei Huarong Holding Co., Ltd. (600421) 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 Huarong Holding Co., Ltd.

Why is Hubei Huarong Holding Co., Ltd. ?

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

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%

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 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 Industrial Manufacturing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hubei Huarong Holding Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hubei Huarong Holding Co., Ltd.

-0.99%

0.74

54.40%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.64%

EBIT Growth (5y)

-171.65%

EBIT to Interest (avg)

-1.55

Debt to EBITDA (avg)

4.68

Net Debt to Equity (avg)

2.70

Sales to Capital Employed (avg)

2.41

Tax Ratio

17.08%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.33%

ROE (avg)

8.25%

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

315.43

EV to EBIT

-1276.25

EV to EBITDA

343.32

EV to Capital Employed

15.11

EV to Sales

12.39

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.18%

ROE (Latest)

-71.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

19What is working for the Company

CASH AND EQV(HY)

Highest at CNY 28 MM

NET SALES(Q)

Highest at CNY 53.42 MM

NET PROFIT(Q)

Highest at CNY 1.42 MM

EPS(Q)

Highest at CNY 0.01

-12What is not working for the Company

INTEREST(HY)

At CNY 1.66 MM has Grown at 24.13%

OPERATING CASH FLOW(Y)

Lowest at CNY -13.29 MM

RAW MATERIAL COST(Y)

Grown by 16.01% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 740.68 %

Here's what is working for Hubei Huarong Holding Co., Ltd.

Net Sales

At CNY 53.42 MM has Grown at 65.88%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Profit

At CNY 1.42 MM has Grown at 141.43%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 53.42 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

Highest at CNY 1.42 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 28 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Hubei Huarong Holding Co., Ltd.

Interest

At CNY 1.66 MM has Grown at 24.13%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -13.29 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 740.68 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 16.01% (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