Hubei Huitian New Materials Co., Ltd. (300041) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hubei Huitian New Materials Co., Ltd.

Why is Hubei Huitian New Materials Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 15.39% and Operating profit at -8.93% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 9.21% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 15.39% and Operating profit at -8.93% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

INTEREST(9M) At CNY 47.6 MM has Grown at 26.01%
NET PROFIT(HY) At CNY 18.33 MM has Grown at -77.54%
ROCE(HY) Lowest at 3.59%

With ROE of 3.78%, it has a very expensive valuation with a 2.10 Price to Book Value

Over the past year, while the stock has generated a return of 35.61%, its profits have fallen by -47.4%
At the current price, the company has a high dividend yield of 1.4

Market Beating Performance

The stock has generated a return of 35.61% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hubei Huitian New Materials Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

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

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

Is Hubei Huitian New Materials Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hubei Huitian New Materials Co., Ltd.

20.41%

0.96

44.17%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.39%

EBIT Growth (5y)

-8.93%

EBIT to Interest (avg)

10.55

Debt to EBITDA (avg)

3.69

Net Debt to Equity (avg)

0.49

Sales to Capital Employed (avg)

0.71

Tax Ratio

22.28%

Dividend Payout Ratio

79.49%

Pledged Shares

Institutional Holding

ROCE (avg)

6.61%

ROE (avg)

9.21%

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

2.10

EV to EBIT

64.32

EV to EBITDA

26.81

EV to Capital Employed

1.67

EV to Sales

1.91

PEG Ratio

Dividend Yield

1.35%

ROCE (Latest)

2.60%

ROE (Latest)

3.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

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

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -22.59% (YoY

CASH AND EQV(HY)

Highest at CNY 2,689.62 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.17%

NET SALES(Q)

Highest at CNY 1,065 MM

PRE-TAX PROFIT(Q)

Highest at CNY 92.94 MM

NET PROFIT(Q)

Highest at CNY 80.2 MM

EPS(Q)

Highest at CNY 0.15

-14What is not working for the Company

INTEREST(9M)

At CNY 47.6 MM has Grown at 26.01%

NET PROFIT(HY)

At CNY 18.33 MM has Grown at -77.54%

ROCE(HY)

Lowest at 3.59%

Here's what is working for Hubei Huitian New Materials Co., Ltd.

Net Sales

Highest at CNY 1,065 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 92.94 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 80.2 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.15

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 2,689.62 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 2.17%

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 -22.59% (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 Huitian New Materials Co., Ltd.

Interest

At CNY 47.6 MM has Grown at 26.01%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)