Why is Hunan Development Group Co. Ltd. ?
1
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)
2
Poor long term growth as Net Sales has grown by an annual rate of 8.74% and Operating profit at 3.78% over the last 5 years
3
The company has declared Negative results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at CNY 212.98 MM
- DEBTORS TURNOVER RATIO(HY) Lowest at 0.75%
- INTEREST(Q) Highest at CNY 2.16 MM
4
With ROE of 1.83%, it has a very expensive valuation with a 1.81 Price to Book Value
- Over the past year, while the stock has generated a return of 27.22%, its profits have risen by 22.9% ; the PEG ratio of the company is 4.3
- At the current price, the company has a high dividend yield of 0.4
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, High Return
Absolute
Risk Adjusted
Volatility
Hunan Development Group Co. Ltd.
6.18%
0.80
48.98%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
8.74%
EBIT Growth (5y)
3.78%
EBIT to Interest (avg)
22.08
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.16
Sales to Capital Employed (avg)
0.10
Tax Ratio
41.10%
Dividend Payout Ratio
34.22%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.22%
ROE (avg)
2.31%
Valuation Key Factors 
Factor
Value
P/E Ratio
99
Industry P/E
Price to Book Value
1.81
EV to EBIT
76.68
EV to EBITDA
32.26
EV to Capital Employed
2.00
EV to Sales
16.12
PEG Ratio
4.32
Dividend Yield
0.41%
ROCE (Latest)
2.60%
ROE (Latest)
1.83%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Movement
12What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -10.88% (YoY
NET SALES(Q)
Highest at CNY 110.34 MM
OPERATING PROFIT(Q)
Highest at CNY 68.09 MM
PRE-TAX PROFIT(Q)
At CNY 45.44 MM has Grown at 101.07%
NET PROFIT(Q)
Highest at CNY 36.7 MM
EPS(Q)
Highest at CNY 0.08
-14What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 212.98 MM
DEBTORS TURNOVER RATIO(HY)
Lowest at 0.75%
INTEREST(Q)
Highest at CNY 2.16 MM
Here's what is working for Hunan Development Group Co. Ltd.
Net Sales
At CNY 110.34 MM has Grown at 47.65%
over average net sales of the previous four periods of CNY 74.73 MMMOJO Watch
Near term sales trend is very positive
Net Sales (CNY MM)
Net Profit
At CNY 36.7 MM has Grown at 217.15%
over average net sales of the previous four periods of CNY 11.57 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Net Sales
Highest at CNY 110.34 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Operating Profit
Highest at CNY 68.09 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CNY MM)
Pre-Tax Profit
Highest at CNY 45.44 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Pre-Tax Profit
At CNY 45.44 MM has Grown at 101.07%
over average net sales of the previous four periods of CNY 22.6 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 36.7 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.08
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Raw Material Cost
Fallen by -10.88% (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.
Interest
At CNY 2.16 MM has Grown at 60.63%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Cash Flow
Lowest at CNY 212.98 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 2.16 MM
in the last five periods and Increased by 60.63% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debtors Turnover Ratio
Lowest at 0.75%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






