Hunan Development Group Co. Ltd. (000722) 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

Hunan Development Group Co. Ltd.

Why is Hunan Development Group Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 2.22%

The company has been able to generate a Return on Capital Employed (avg) of 2.22% 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 0.17% and Operating profit at 8.10% over the last 5 years

Negative results in Mar 26

NET SALES(Q) At CNY 56.36 MM has Fallen at -35.44%
INTEREST(Q) At CNY 1.29 MM has Grown at 23.91%
INVENTORY TURNOVER RATIO(HY) Lowest at 13.49 times

Below par performance in long term as well as near term

Along with generating -11.96% 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 Power)

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

Is Hunan Development Group Co. Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Hunan Development Group Co. Ltd.

9.0%

0.39

48.30%

China Shanghai Composite

8.25%

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)

0.17%

EBIT Growth (5y)

8.10%

EBIT to Interest (avg)

22.96

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

0.10

Tax Ratio

19.09%

Dividend Payout Ratio

32.18%

Pledged Shares

Institutional Holding

ROCE (avg)

2.34%

ROE (avg)

2.31%

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

2.08

EV to EBIT

80.74

EV to EBITDA

42.33

EV to Capital Employed

2.38

EV to Sales

16.83

PEG Ratio

1.00

Dividend Yield

0.35%

ROCE (Latest)

2.94%

ROE (Latest)

2.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

10What is working for the Company

NET PROFIT(HY)

At CNY 21.19 MM has Grown at 99.3%

ROCE(HY)

Highest at 2.58%

DEBT-EQUITY RATIO (HY)

Lowest at -21.38 %

RAW MATERIAL COST(Y)

Fallen by -94.09% (YoY

-16What is not working for the Company

NET SALES(Q)

At CNY 56.36 MM has Fallen at -35.44%

INTEREST(Q)

At CNY 1.29 MM has Grown at 23.91%

INVENTORY TURNOVER RATIO(HY)

Lowest at 13.49 times

Here's what is working for Hunan Development Group Co. Ltd.

Net Profit

At CNY 21.19 MM has Grown at 99.3%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at -21.38 % and Grown

In each half year 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 -94.09% (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 Hunan Development Group Co. Ltd.

Net Sales

At CNY 56.36 MM has Fallen at -35.44%

over average net sales of the previous four periods of CNY 87.29 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 1.29 MM has Grown at 23.91%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 13.49 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio