Hunan New Wellful Co., Ltd. (600975) 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 New Wellful Co., Ltd.

Why is Hunan New Wellful Co., Ltd. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 23.73% and Operating profit at -11.55% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With a fall in Net Sales of -16.47%, the company declared Very Negative results in Sep 25

The company has declared negative results in Jan 70 after 4 consecutive negative quarters
RAW MATERIAL COST(Y) Grown by 66.75% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 3.12 times
NET SALES(Q) Lowest at CNY 1,702.2 MM

Below par performance in long term as well as near term

Along with generating -5.01% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 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?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hunan New Wellful Co., Ltd.

-16.54%

-1.66

21.99%

China Shanghai Composite

15.17%

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)

23.73%

EBIT Growth (5y)

-11.55%

EBIT to Interest (avg)

-0.30

Debt to EBITDA (avg)

1.99

Net Debt to Equity (avg)

0.60

Sales to Capital Employed (avg)

1.08

Tax Ratio

0.80%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.26%

ROE (avg)

5.21%

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

2.61

EV to EBIT

21.60

EV to EBITDA

6.60

EV to Capital Employed

2.18

EV to Sales

1.22

PEG Ratio

0.17

Dividend Yield

ROCE (Latest)

10.07%

ROE (Latest)

10.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 812.62 MM

-24What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 66.75% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.12 times

NET SALES(Q)

Lowest at CNY 1,702.2 MM

OPERATING PROFIT(Q)

Lowest at CNY -27.45 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1.61 %

PRE-TAX PROFIT(Q)

Lowest at CNY -81.04 MM

NET PROFIT(Q)

Lowest at CNY -65.54 MM

EPS(Q)

Lowest at CNY -0.05

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

Operating Cash Flow

Highest at CNY 812.62 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)

Here's what is not working for Hunan New Wellful Co., Ltd.

Pre-Tax Profit

At CNY -81.04 MM has Fallen at -131.4%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -65.54 MM has Fallen at -126.41%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 1,702.2 MM has Fallen at -16.47%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 1,702.2 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -27.45 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -1.61 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -81.04 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -65.54 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.05

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 3.12 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 66.75% (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