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

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 -0.39% and Operating profit at -2.58% over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY -35.98 MM
NET PROFIT(Q) At CNY -3.63 MM has Fallen at -44.42%
RAW MATERIAL COST(Y) Grown by 37.93% (YoY)

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 39.59%, 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.

91.09%

2.43

54.32%

China Shanghai Composite

24.02%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.39%

EBIT Growth (5y)

-2.58%

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)

1.25

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

8.50

EV to EBIT

-38.51

EV to EBITDA

-46.84

EV to Capital Employed

7.98

EV to Sales

3.61

PEG Ratio

Dividend Yield

0.12%

ROCE (Latest)

-20.74%

ROE (Latest)

-13.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly 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

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -87.55% (YoY

PRE-TAX PROFIT(Q)

At CNY -6.73 MM has Grown at 59.97%

NET PROFIT(Q)

At CNY -5.79 MM has Grown at 64.04%

-18What is not working for the Company

NET SALES(Q)

At CNY 162.43 MM has Fallen at -24.15%

DEBT-EQUITY RATIO (HY)

Highest at 20.71 %

OPERATING PROFIT(Q)

Lowest at CNY -18.39 MM

CASH AND EQV(HY)

Lowest at CNY 272.38 MM

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

Pre-Tax Profit

At CNY -6.73 MM has Grown at 59.97%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -5.79 MM has Grown at 64.04%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -87.55% (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.

Net Sales

At CNY 162.43 MM has Fallen at -24.15%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -18.39 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Debt-Equity Ratio

Highest at 20.71 % and Grown

In each half year 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

Cash and Eqv

Lowest at CNY 272.38 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents