Hunan Hualian China Industry 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 Hualian China Industry Co., Ltd.

Why is Hunan Hualian China Industry Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 8.35% and Operating profit at 10.32% over the last 5 years

Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 389.83 MM
ROCE(HY) Highest at 12.9%
RAW MATERIAL COST(Y) Fallen by -7.97% (YoY)

With ROE of 12.67%, it has a attractive valuation with a 2.23 Price to Book Value

Over the past year, while the stock has generated a return of 27.12%, its profits have risen by 13.7% ; the PEG ratio of the company is 1.3

Market Beating performance in long term as well as near term

Along with generating 27.12% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hunan Hualian China Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

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

Is Hunan Hualian China Industry Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hunan Hualian China Industry Co., Ltd.

27.12%

0.64

54.45%

China Shanghai Composite

16.01%

1.07

14.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.35%

EBIT Growth (5y)

10.32%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.48

Sales to Capital Employed (avg)

0.77

Tax Ratio

11.46%

Dividend Payout Ratio

49.14%

Pledged Shares

Institutional Holding

ROCE (avg)

30.08%

ROE (avg)

11.41%

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

2.23

EV to EBIT

14.04

EV to EBITDA

10.75

EV to Capital Employed

3.40

EV to Sales

2.06

PEG Ratio

1.28

Dividend Yield

ROCE (Latest)

24.22%

ROE (Latest)

12.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 389.83 MM

ROCE(HY)

Highest at 12.9%

RAW MATERIAL COST(Y)

Fallen by -7.97% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 6.14 times

DEBTORS TURNOVER RATIO(HY)

Highest at 10.01 times

NET SALES(Q)

Highest at CNY 406.53 MM

NET PROFIT(Q)

Highest at CNY 73.58 MM

-8What is not working for the Company

INTEREST(HY)

At CNY 0.3 MM has Grown at 23.34%

DEBT-EQUITY RATIO (HY)

Highest at -45.38 %

Here's what is working for Hunan Hualian China Industry Co., Ltd.

Operating Cash Flow

Highest at CNY 389.83 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 406.53 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

Highest at CNY 73.58 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 6.14 times

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 10.01 times

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 -7.97% (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 Hualian China Industry Co., Ltd.

Interest

At CNY 0.3 MM has Grown at 23.34%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -45.38 %

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