Hwaxin Environmental Co., Ltd. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

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Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hwaxin Environmental Co., Ltd.

Why is Hwaxin Environmental Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 6.83%

The company has been able to generate a Return on Capital Employed (avg) of 6.83% 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 5.94% and Operating profit at -24.78% over the last 5 years

The company declared positive results in Mar'25 after negative results in Dec'24

OPERATING CASH FLOW(Y) Highest at CNY 171.52 MM
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
RAW MATERIAL COST(Y) Fallen by -10.15% (YoY)

With ROE of 2.83%, it has a attractive valuation with a 0.93 Price to Book Value

Over the past year, while the stock has generated a return of 112.28%, its profits have risen by 26.4% ; the PEG ratio of the company is 1.2

Market Beating performance in long term as well as near term

Along with generating 112.28% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hwaxin Environmental Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Hwaxin Environmental Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hwaxin Environmental Co., Ltd.

116.79%

2.85

52.12%

China Shanghai Composite

16.01%

1.03

14.98%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.94%

EBIT Growth (5y)

-24.78%

EBIT to Interest (avg)

26.36

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.39

Sales to Capital Employed (avg)

0.34

Tax Ratio

5.16%

Dividend Payout Ratio

25.43%

Pledged Shares

Institutional Holding

ROCE (avg)

6.83%

ROE (avg)

3.69%

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

0.93

EV to EBIT

21.77

EV to EBITDA

12.16

EV to Capital Employed

0.88

EV to Sales

1.49

PEG Ratio

1.24

Dividend Yield

ROCE (Latest)

4.06%

ROE (Latest)

2.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 171.52 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -10.15% (YoY

NET PROFIT(9M)

Higher at CNY 54.33 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 1.31 times

NET SALES(Q)

At CNY 264.41 MM has Grown at 38.56%

-15What is not working for the Company

INTEREST(HY)

At CNY 2.33 MM has Grown at 297.21%

DEBT-EQUITY RATIO (HY)

Highest at -34.94 %

OPERATING PROFIT(Q)

Lowest at CNY 12.91 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.88 %

Here's what is working for Hwaxin Environmental Co., Ltd.

Operating Cash Flow

Highest at CNY 171.52 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)

Net Sales

At CNY 264.41 MM has Grown at 38.56%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 1.31 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Profit

Higher at CNY 54.33 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost

Fallen by -10.15% (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 Hwaxin Environmental Co., Ltd.

Interest

At CNY 2.33 MM has Grown at 297.21%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -34.94 % and Grown

In each half year 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

Operating Profit

Lowest at CNY 12.91 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.88 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales