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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hunan Hengguang Technology Co., Ltd.

Why is Hunan Hengguang Technology Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 11.54% and Operating profit at -136.10% over the last 5 years
The company is Net-Debt Free
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 11.54% and Operating profit at -136.10% over the last 5 years

Positive results in Mar 26

ROCE(HY) Highest at 0.32%
RAW MATERIAL COST(Y) Fallen by -49.91% (YoY)
NET SALES(Q) Highest at CNY 408.64 MM

With ROE of 0.59%, it has a very expensive valuation with a 0.53 Price to Book Value

Over the past year, while the stock has generated a return of 21.89%, its profits have risen by 120% ; the PEG ratio of the company is 0.8

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hunan Hengguang Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Chemicals & Petrochemicals)

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

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hunan Hengguang Technology Co., Ltd.

21.89%

1.64

51.06%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.54%

EBIT Growth (5y)

-136.10%

EBIT to Interest (avg)

45.34

Debt to EBITDA (avg)

0.75

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.63

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

Industry P/E

Price to Book Value

0.53

EV to EBIT

-165.08

EV to EBITDA

11.61

EV to Capital Employed

0.54

EV to Sales

0.49

PEG Ratio

0.76

Dividend Yield

ROCE (Latest)

-0.33%

ROE (Latest)

0.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

23What is working for the Company

ROCE(HY)

Highest at 0.32%

RAW MATERIAL COST(Y)

Fallen by -49.91% (YoY

NET SALES(Q)

Highest at CNY 408.64 MM

PRE-TAX PROFIT(Q)

Highest at CNY 24.19 MM

NET PROFIT(Q)

Highest at CNY 23.99 MM

EPS(Q)

Highest at CNY 0.22

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -434.42 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 10.19 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.54 times

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

Pre-Tax Profit

At CNY 24.19 MM has Grown at 316.44%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 23.99 MM has Grown at 509.14%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 408.64 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 24.19 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 23.99 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.22

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -49.91% (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.

Operating Cash Flow

Lowest at CNY -434.42 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Lowest at 10.19 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 5.54 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio