Why is Hunan New Wellful Co., Ltd. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 4.26%
- Poor long term growth as Net Sales has grown by an annual rate of 27.44% and Operating profit at 15.07% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
The company has declared negative results in Jan 70 after 4 consecutive negative quarters
- INVENTORY TURNOVER RATIO(HY) Lowest at 3.32%
3
Below par performance in long term as well as near term
- Along with generating -12.37% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
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 FMCG)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hunan New Wellful Co., Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Hunan New Wellful Co., Ltd.
-100.0%
-1.35
24.85%
China Shanghai Composite
15.19%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
27.44%
EBIT Growth (5y)
15.07%
EBIT to Interest (avg)
-0.30
Debt to EBITDA (avg)
1.99
Net Debt to Equity (avg)
0.60
Sales to Capital Employed (avg)
1.07
Tax Ratio
0.80%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.26%
ROE (avg)
5.21%
Valuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
1.36
EV to EBIT
12.53
EV to EBITDA
3.82
EV to Capital Employed
1.26
EV to Sales
0.71
PEG Ratio
0.09
Dividend Yield
NA
ROCE (Latest)
10.07%
ROE (Latest)
10.92%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Movement
25What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 1,144.2 MM
ROCE(HY)
Highest at 10.84%
PRE-TAX PROFIT(Q)
At CNY 25.83 MM has Grown at 109.93%
NET PROFIT(Q)
At CNY 18.9 MM has Grown at 107.43%
RAW MATERIAL COST(Y)
Fallen by -173.41% (YoY
CASH AND EQV(HY)
Highest at CNY 2,508.28 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 44.46%
NET SALES(Q)
At CNY 1,860.25 MM has Grown at 30.36%
-1What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.32%
Here's what is working for Hunan New Wellful Co., Ltd.
Pre-Tax Profit
At CNY 25.83 MM has Grown at 109.93%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 18.9 MM has Grown at 107.43%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Operating Cash Flow
Highest at CNY 1,144.2 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Sales
At CNY 1,860.25 MM has Grown at 30.36%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Cash and Eqv
Highest at CNY 2,508.28 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 44.46%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -173.41% (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 New Wellful Co., Ltd.
Inventory Turnover Ratio
Lowest at 3.32%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio






