Hunan Hengguang Technology Co., Ltd. () 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 Hengguang Technology Co., Ltd.

Why is Hunan Hengguang Technology 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 8.61% and Operating profit at -150.73% 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 7.04% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.61% and Operating profit at -150.73% over the last 5 years

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 24.13%, its profits have risen by 66.9%

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 Chemicals & Petrochemicals)

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

Is Hunan Hengguang Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hunan Hengguang Technology Co., Ltd.

4.51%

1.32

55.84%

China Shanghai Composite

12.36%

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)

8.61%

EBIT Growth (5y)

-150.73%

EBIT to Interest (avg)

45.34

Debt to EBITDA (avg)

0.75

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.54

Tax Ratio

8.05%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.98%

ROE (avg)

7.04%

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

0.43

EV to EBIT

-24.31

EV to EBITDA

10.16

EV to Capital Employed

0.55

EV to Sales

0.68

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.26%

ROE (Latest)

-1.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

26What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 555.35 MM

NET PROFIT(Q)

At CNY 3.94 MM has Grown at 126.55%

RAW MATERIAL COST(Y)

Fallen by -705.96% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 2.28 %

INVENTORY TURNOVER RATIO(HY)

Highest at 13.13%

DEBTORS TURNOVER RATIO(HY)

Highest at 6.04%

NET SALES(Q)

At CNY 370.28 MM has Grown at 28.93%

PRE-TAX PROFIT(Q)

Highest at CNY 5.81 MM

EPS(Q)

Highest at CNY 0.04

-2What is not working for the Company

INTEREST(9M)

At CNY 10.58 MM has Grown at 7.81%

Here's what is working for Hunan Hengguang Technology Co., Ltd.

Pre-Tax Profit

At CNY 5.81 MM has Grown at 137.16%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 3.94 MM has Grown at 126.55%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 555.35 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 370.28 MM has Grown at 28.93%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 5.81 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 3.94 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at 2.28 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 13.13%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 6.04%

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 -705.96% (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 Hengguang Technology Co., Ltd.

Interest

At CNY 10.58 MM has Grown at 7.81%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Non Operating Income

Highest at CNY 1.01 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income