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 -5.57% and Operating profit at -3.08% over the last 5 years
3
With a growth in Operating Profit of 421.93%, the company declared Very Positive results in Mar 25
- The company has declared positive results in Jan 70 after 3 consecutive negative quarters
- OPERATING CASH FLOW(Y) Highest at CNY 219.37 MM
- RAW MATERIAL COST(Y) Fallen by -33.66% (YoY)
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 -12.13%, its profits have fallen by -616%
5
Underperformed the market in the last 1 year
- Even though the market (China Shanghai Composite) has generated returns of 15.18% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -12.13% returns
How much should you hold?
- Overall Portfolio exposure to Hwa Create Corp. should be less than 10%
- Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hwa Create Corp. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Hwa Create Corp.
-9.16%
0.72
48.45%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
-5.57%
EBIT Growth (5y)
-3.08%
EBIT to Interest (avg)
-32.93
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.11
Sales to Capital Employed (avg)
0.33
Tax Ratio
9.91%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0.39%
ROE (avg)
0.30%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
5.87
EV to EBIT
-55.67
EV to EBITDA
-155.67
EV to Capital Employed
6.47
EV to Sales
18.14
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-11.62%
ROE (Latest)
-8.81%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
4What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 219.37 MM
RAW MATERIAL COST(Y)
Fallen by -33.66% (YoY
-19What is not working for the Company
NET SALES(9M)
At CNY 313.68 MM has Grown at -52.38%
NET PROFIT(9M)
At CNY -162.2 MM has Grown at -749.26%
ROCE(HY)
Lowest at -9.74%
INVENTORY TURNOVER RATIO(HY)
Lowest at 0.81%
Here's what is working for Hwa Create Corp.
Operating Cash Flow
Highest at CNY 219.37 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Raw Material Cost
Fallen by -33.66% (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 Hwa Create Corp.
Net Sales
At CNY 235.12 MM has Grown at -49.16%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (CNY MM)
Net Profit
At CNY -131.02 MM has Grown at -2,064.64%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Inventory Turnover Ratio
Lowest at 0.81%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio






