Why is Hundsun Technologies, Inc. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 9.10% and Operating profit at -7.76% over the last 5 years
2
The company has declared Negative results for the last 5 consecutive quarters
- INTEREST(HY) At CNY 26.34 MM has Grown at 108.14%
- OPERATING CASH FLOW(Y) Lowest at CNY 1,029.04 MM
- ROCE(HY) Lowest at 13.33%
3
With ROE of 11.32%, it has a very expensive valuation with a 7.12 Price to Book Value
- Over the past year, while the stock has generated a return of -8.95%, its profits have fallen by -30.4%
- At the current price, the company has a high dividend yield of 0.3
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -8.95% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
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 Software Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hundsun Technologies, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Hundsun Technologies, Inc.
-8.95%
1.11
41.81%
China Shanghai Composite
14.77%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
9.10%
EBIT Growth (5y)
-7.76%
EBIT to Interest (avg)
83.63
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.23
Sales to Capital Employed (avg)
0.80
Tax Ratio
2.79%
Dividend Payout Ratio
18.14%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
18.58%
ROE (avg)
21.01%
Valuation Key Factors 
Factor
Value
P/E Ratio
63
Industry P/E
Price to Book Value
7.12
EV to EBIT
120.77
EV to EBITDA
88.75
EV to Capital Employed
8.95
EV to Sales
9.88
PEG Ratio
NA
Dividend Yield
0.31%
ROCE (Latest)
7.41%
ROE (Latest)
11.32%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Movement
1What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 1.31% (YoY
-36What is not working for the Company
INTEREST(HY)
At CNY 26.34 MM has Grown at 108.14%
OPERATING CASH FLOW(Y)
Lowest at CNY 1,029.04 MM
ROCE(HY)
Lowest at 13.33%
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.86%
NET SALES(Q)
Lowest at CNY 1,019.32 MM
OPERATING PROFIT(Q)
Lowest at CNY -73.5 MM
OPERATING PROFIT MARGIN(Q)
Lowest at -7.21 %
PRE-TAX PROFIT(Q)
Lowest at CNY 10.76 MM
NET PROFIT(Q)
Lowest at CNY 30.15 MM
Here's what is working for Hundsun Technologies, Inc.
Raw Material Cost
Fallen by 1.31% (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 Hundsun Technologies, Inc.
Interest
At CNY 26.34 MM has Grown at 108.14%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Pre-Tax Profit
At CNY 10.76 MM has Fallen at -81.03%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Debtors Turnover Ratio
Lowest at 4.86% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Operating Cash Flow
Lowest at CNY 1,029.04 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Net Sales
Lowest at CNY 1,019.32 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Net Sales
Fallen at -13.63%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY -73.5 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at -7.21 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CNY 10.76 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Net Profit
Lowest at CNY 30.15 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
Non Operating Income
Highest at CNY 6.72 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






