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Hwa Create Corp.

  • Market Cap: Mid Cap
  • Industry: Telecom - Equipment & Accessories
  • ISIN: CNE100000KL1
  • SHE: 300045
CNY
11.80
-0.26 (-2.16%)

Sep 23

SHE

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Hwa Create Corp.

Why is Hwa Create Corp. ?

1
Poor Management Efficiency with a low ROCE of 0.39%
  • The company has been able to generate a Return on Capital Employed (avg) of 0.39% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 4.76% and Operating profit at -226.10% over the last 5 years
3
Flat results in Mar 26
  • INTEREST(HY) At CNY 1.03 MM has Grown at 15.92%
  • NET SALES(Q) At CNY 146.84 MM has Fallen at -24.85%
  • OPERATING CASH FLOW(Y) Lowest at CNY 137.65 MM
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 -6.69%, its profits have risen by 63.6%
5
Underperformed the market in the last 1 year
  • Even though the market (China Shanghai Composite) has generated returns of 16.83% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -6.69% returns
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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 Telecom - Equipment & Accessories)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hwa Create Corp. for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
Hwa Create Corp.
-46.09%
-0.01
56.05%
China Shanghai Composite
3.0%
1.20
14.07%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
4.76%
EBIT Growth (5y)
-226.10%
EBIT to Interest (avg)
-45.17
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.11
Sales to Capital Employed (avg)
0.41
Tax Ratio
10.61%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0.14%
ROE (avg)
0.30%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
7.35
EV to EBIT
-156.02
EV to EBITDA
654.15
EV to Capital Employed
7.71
EV to Sales
13.98
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-4.94%
ROE (Latest)
-3.82%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company
NET PROFIT(HY)

Higher at CNY -35.17 MM

-31What is not working for the Company
INTEREST(HY)

At CNY 0.6 MM has Grown at 55.86%

OPERATING CASH FLOW(Y)

Lowest at CNY 183.12 MM

PRE-TAX PROFIT(Q)

At CNY -29.83 MM has Fallen at -86.03%

NET PROFIT(Q)

At CNY -24.12 MM has Fallen at -66.35%

RAW MATERIAL COST(Y)

Grown by 58.22% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -8.02 %

NET SALES(Q)

Lowest at CNY 91.99 MM

Here's what is not working for Hwa Create Corp.

Interest
At CNY 0.6 MM has Grown at 55.86%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales
At CNY 91.99 MM has Fallen at -53.49%
over average net sales of the previous four periods of CNY 197.78 MM
MOJO Watch
Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit
At CNY -29.83 MM has Fallen at -86.03%
over average net sales of the previous four periods of CNY -16.03 MM
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit
At CNY -24.12 MM has Fallen at -66.35%
over average net sales of the previous four periods of CNY -14.5 MM
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow
Lowest at CNY 183.12 MM and Fallen
In each year in the last three years
MOJO Watch
The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales
Lowest at CNY 91.99 MM
in the last five periods
MOJO Watch
Near term sales trend is negative

Net Sales (CNY MM)

Debt-Equity Ratio
Highest at -8.02 %
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

Raw Material Cost
Grown by 58.22% (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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Hwa Create Corp. (300045) Stock Recommendation | Score, Valuation, Technicals & Financial Trend