Hwa Create Corp. (300045) 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

Hwa Create Corp.

Why is Hwa Create Corp. ?

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)

Poor long term growth as Net Sales has grown by an annual rate of -0.43% and Operating profit at 4.01% over the last 5 years

With a growth in Net Sales of 18.81%, the company declared Outstanding results in Sep 25

The company has declared positive results in Jan 70 after 3 consecutive negative quarters
NET SALES(Q) Highest at CNY 231.68 MM
PRE-TAX PROFIT(Q) At CNY 8.03 MM has Grown at 120.6%
NET PROFIT(Q) At CNY 5.75 MM has Grown at 116.23%

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 10.82%, its profits have fallen by -616%

Real-Time Research Report

Verdict Report

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, Medium Return

Absolute

Risk Adjusted

Volatility

Hwa Create Corp.

8.76%

0.39

56.49%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.43%

EBIT Growth (5y)

4.01%

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)

0.36

Tax Ratio

9.91%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.39%

ROE (avg)

0.30%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

8.90

EV to EBIT

-85.02

EV to EBITDA

-237.75

EV to Capital Employed

9.88

EV to Sales

27.70

PEG Ratio

Dividend Yield

ROCE (Latest)

-11.62%

ROE (Latest)

-8.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

27What is working for the Company

NET SALES(Q)

Highest at CNY 231.68 MM

PRE-TAX PROFIT(Q)

At CNY 8.03 MM has Grown at 120.6%

NET PROFIT(Q)

At CNY 5.75 MM has Grown at 116.23%

RAW MATERIAL COST(Y)

Fallen by -1,109.9% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 1.25 times

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Hwa Create Corp.

Net Sales

At CNY 231.68 MM has Grown at 81.08%

over average net sales of the previous four periods of CNY 127.95 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Net Sales

Highest at CNY 231.68 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 8.03 MM has Grown at 120.6%

over average net sales of the previous four periods of CNY -38.97 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 5.75 MM has Grown at 116.23%

over average net sales of the previous four periods of CNY -35.44 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Debtors Turnover Ratio

Highest at 1.25 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -1,109.9% (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.

Non Operating Income

Highest at CNY 0.19 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income