Why is Hunan Huasheng Co., Ltd. ?
1
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of -5.62% and Operating profit at 2.99% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 0.65% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of -5.62% and Operating profit at 2.99% over the last 5 years
3
The company has declared negative results for the last 3 consecutive quarters
- NET SALES(Q) At CNY 159.27 MM has Fallen at -27.27%
- PRE-TAX PROFIT(Q) At CNY -20.14 MM has Fallen at -125.92%
- NET PROFIT(Q) At CNY -18.21 MM has Fallen at -168.47%
4
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 1.72%, its profits have risen by 13.6%
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.
3.85%
2.68
63.91%
China Shanghai Composite
0.9%
0.22
14.72%
Quality key factors
Factor
Value
Sales Growth (5y)
-5.62%
EBIT Growth (5y)
2.99%
EBIT to Interest (avg)
-17.14
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.06
Sales to Capital Employed (avg)
1.25
Tax Ratio
14.45%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
0.65%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
9.04
EV to EBIT
-43.73
EV to EBITDA
-53.62
EV to Capital Employed
7.66
EV to Sales
4.58
PEG Ratio
NA
Dividend Yield
0.12%
ROCE (Latest)
-17.51%
ROE (Latest)
-11.29%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
3What is working for the Company
NET PROFIT(HY)
Higher at CNY -24 MM
-24What is not working for the Company
NET SALES(Q)
At CNY 159.27 MM has Fallen at -27.27%
PRE-TAX PROFIT(Q)
At CNY -20.14 MM has Fallen at -125.92%
NET PROFIT(Q)
At CNY -18.21 MM has Fallen at -168.47%
ROCE(HY)
Lowest at -12.27%
RAW MATERIAL COST(Y)
Grown by 137.5% (YoY
CASH AND EQV(HY)
Lowest at CNY 258.37 MM
DEBT-EQUITY RATIO
(HY)
Highest at 8.62 %
Here's what is not working for Hunan Huasheng Co., Ltd.
Net Sales
At CNY 159.27 MM has Fallen at -27.27%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Pre-Tax Profit
At CNY -20.14 MM has Fallen at -125.92%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY -18.21 MM has Fallen at -168.47%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Cash and Eqv
Lowest at CNY 258.37 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 8.62 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 137.5% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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