Hygon Information Technology Co., Ltd. () 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

Hygon Information Technology Co., Ltd.

Why is Hygon Information Technology Co., Ltd. ?

Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 2,856.4 MM
ROCE(HY) Highest at 11.35%
NET SALES(Q) Highest at CNY 4,025.74 MM

With ROE of 14.82%, it has a attractive valuation with a 20.10 Price to Book Value

Over the past year, while the stock has generated a return of 59.68%, its profits have risen by 53.7% ; the PEG ratio of the company is 2.6

Consistent Returns over the last 3 years

Along with generating 59.68% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hygon Information Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is Hygon Information Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hygon Information Technology Co., Ltd.

55.42%

4.34

58.42%

China Shanghai Composite

15.45%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

54.43%

EBIT Growth (5y)

68.79%

EBIT to Interest (avg)

53.67

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

0.37

Tax Ratio

2.50%

Dividend Payout Ratio

20.44%

Pledged Shares

Institutional Holding

ROCE (avg)

15.47%

ROE (avg)

10.35%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

136

Industry P/E

Price to Book Value

20.10

EV to EBIT

152.85

EV to EBITDA

91.29

EV to Capital Employed

28.37

EV to Sales

38.89

PEG Ratio

2.57

Dividend Yield

ROCE (Latest)

18.56%

ROE (Latest)

14.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

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

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,856.4 MM

ROCE(HY)

Highest at 11.35%

NET SALES(Q)

Highest at CNY 4,025.74 MM

PRE-TAX PROFIT(Q)

Highest at CNY 1,201.22 MM

NET PROFIT(Q)

Highest at CNY 759.99 MM

EPS(Q)

Highest at CNY 0.33

-14What is not working for the Company

INTEREST(HY)

At CNY 28.97 MM has Grown at 80.61%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.03 times

RAW MATERIAL COST(Y)

Grown by 5.97% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -15.44 %

OPERATING PROFIT MARGIN(Q)

Lowest at 27.52 %

Here's what is working for Hygon Information Technology Co., Ltd.

Net Sales

At CNY 4,025.74 MM has Grown at 69.6%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 2,856.4 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 4,025.74 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 1,201.22 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 759.99 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.33

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Hygon Information Technology Co., Ltd.

Interest

At CNY 28.97 MM has Grown at 80.61%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 1.03 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit Margin

Lowest at 27.52 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -15.44 %

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 5.97% (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