Hunan Huasheng Co., Ltd. (600156) 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 Huasheng Co., Ltd.

Why is Hunan Huasheng Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of -1.89% and Operating profit at -1.83% over the last 5 years

Flat results in Mar 25

PRE-TAX PROFIT(Q) At CNY -16.82 MM has Fallen at -89.39%
NET PROFIT(Q) At CNY -16.1 MM has Fallen at -183.54%
INTEREST(Q) At CNY 1.86 MM has Grown at 36.78%

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 48.11%, its profits have fallen by -443.6%

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 Garments & Apparels)

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

Is Hunan Huasheng Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hunan Huasheng Co., Ltd.

48.11%

2.82

58.02%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.89%

EBIT Growth (5y)

-1.83%

EBIT to Interest (avg)

-20.10

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.06

Sales to Capital Employed (avg)

1.18

Tax Ratio

8.57%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.65%

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

9.02

EV to EBIT

-42.68

EV to EBITDA

-57.50

EV to Capital Employed

8.94

EV to Sales

4.11

PEG Ratio

Dividend Yield

0.11%

ROCE (Latest)

-20.95%

ROE (Latest)

-13.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

12What is working for the Company

NET SALES(HY)

At CNY 491.66 MM has Grown at 79.04%

RAW MATERIAL COST(Y)

Fallen by -53.74% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 13.85%

DEBTORS TURNOVER RATIO(HY)

Highest at 11.88%

-21What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -16.82 MM has Fallen at -89.39%

NET PROFIT(Q)

At CNY -16.1 MM has Fallen at -183.54%

INTEREST(Q)

At CNY 1.86 MM has Grown at 36.78%

CASH AND EQV(HY)

Lowest at CNY 377.21 MM

DEBT-EQUITY RATIO (HY)

Highest at 6.61 %

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

Net Sales

At CNY 491.66 MM has Grown at 79.04%

Year on Year (YoY)

MOJO Watch

Sales trend is very positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 13.85%

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 11.88%

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 -53.74% (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 Huasheng Co., Ltd.

Pre-Tax Profit

At CNY -16.82 MM has Fallen at -89.39%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -16.1 MM has Fallen at -183.54%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 1.86 MM has Grown at 36.78%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 377.21 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 6.61 %

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