Why is Hygon Information Technology Co., Ltd. ?
1
Flat results in Jun 25
- INTEREST(HY) At CNY 22.68 MM has Grown at 37.85%
- RAW MATERIAL COST(Y) Grown by 5.67% (YoY)
2
With ROE of 14.82%, it has a attractive valuation with a 10.69 Price to Book Value
- Over the past year, while the stock has generated a return of 72.29%, its profits have risen by 53.7% ; the PEG ratio of the company is 1.4
3
Consistent Returns over the last 3 years
- Along with generating 72.29% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods
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.
72.29%
3.52
61.61%
China Shanghai Composite
14.77%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
44.15%
EBIT Growth (5y)
61.90%
EBIT to Interest (avg)
53.67
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.38
Sales to Capital Employed (avg)
0.34
Tax Ratio
2.50%
Dividend Payout Ratio
20.44%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
15.47%
ROE (avg)
10.35%
Valuation Key Factors 
Factor
Value
P/E Ratio
72
Industry P/E
Price to Book Value
10.69
EV to EBIT
80.25
EV to EBITDA
47.93
EV to Capital Employed
14.90
EV to Sales
20.42
PEG Ratio
1.37
Dividend Yield
NA
ROCE (Latest)
18.56%
ROE (Latest)
14.82%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
18What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 3,295 MM
ROCE(HY)
Highest at 11.3%
NET SALES(Q)
At CNY 3,036.77 MM has Grown at 41.48%
OPERATING PROFIT(Q)
Highest at CNY 1,302.5 MM
NET PROFIT(Q)
Highest at CNY 695.56 MM
EPS(Q)
Highest at CNY 0.3
-15What is not working for the Company
INTEREST(HY)
At CNY 22.68 MM has Grown at 37.85%
RAW MATERIAL COST(Y)
Grown by 5.67% (YoY
Here's what is working for Hygon Information Technology Co., Ltd.
Operating Cash Flow
Highest at CNY 3,295 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Sales
Highest at CNY 3,036.77 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Net Sales
At CNY 3,036.77 MM has Grown at 41.48%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Operating Profit
Highest at CNY 1,302.5 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CNY MM)
Net Profit
Highest at CNY 695.56 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.3
in the last five periodsMOJO 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 13.88 MM has Grown at 57.69%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Raw Material Cost
Grown by 5.67% (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






