Hunan Friendship & Apollo Commercial Co., Ltd. (002277) 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

Hunan Friendship & Apollo Commercial Co., Ltd.

Why is Hunan Friendship & Apollo Commercial Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.29%

The company has been able to generate a Return on Capital Employed (avg) of 0.29% signifying low profitability per unit of total capital (equity and debt)

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 -26.90% and Operating profit at -215.15% 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 0.58% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -26.90% and Operating profit at -215.15% over the last 5 years

The company has declared negative results for the last 2 consecutive quarters

NET PROFIT(HY) At CNY -49.73 MM has Grown at -373.59%
INTEREST(HY) At CNY 173.11 MM has Grown at 15.79%
OPERATING PROFIT(Q) Lowest at CNY -7.47 MM

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 Retailing)

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

Is Hunan Friendship & Apollo Commercial Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hunan Friendship & Apollo Commercial Co., Ltd.

105.37%

3.06

64.87%

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)

-26.90%

EBIT Growth (5y)

-215.15%

EBIT to Interest (avg)

-0.06

Debt to EBITDA (avg)

16.28

Net Debt to Equity (avg)

0.60

Sales to Capital Employed (avg)

0.11

Tax Ratio

1.93%

Dividend Payout Ratio

49.75%

Pledged Shares

Institutional Holding

ROCE (avg)

0.29%

ROE (avg)

0.58%

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

1.53

EV to EBIT

-94.18

EV to EBITDA

66.94

EV to Capital Employed

1.33

EV to Sales

12.63

PEG Ratio

Dividend Yield

0.14%

ROCE (Latest)

-1.41%

ROE (Latest)

-0.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

4What is working for the Company

NET PROFIT(Q)

At CNY 36.63 MM has Grown at 423.04%

RAW MATERIAL COST(Y)

Fallen by -83.48% (YoY

-21What is not working for the Company

NET PROFIT(HY)

At CNY -49.73 MM has Grown at -373.59%

INTEREST(HY)

At CNY 173.11 MM has Grown at 15.79%

OPERATING PROFIT(Q)

Lowest at CNY -7.47 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -2.72 %

CASH AND EQV(HY)

Lowest at CNY 445.62 MM

DEBT-EQUITY RATIO (HY)

Highest at 85.08 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.31%

NET SALES(Q)

At CNY 274.68 MM has Fallen at -11.07%

Here's what is working for Hunan Friendship & Apollo Commercial Co., Ltd.

Net Profit

At CNY 36.63 MM has Grown at 423.04%

over average net sales of the previous four periods of CNY 7 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -83.48% (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 Hunan Friendship & Apollo Commercial Co., Ltd.

Interest

At CNY 173.11 MM has Grown at 15.79%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -7.47 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -2.72 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Sales

At CNY 274.68 MM has Fallen at -11.07%

over average net sales of the previous four periods of CNY 308.88 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 445.62 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 85.08 %

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

Inventory Turnover Ratio

Lowest at 0.31%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio