Jiangsu Hongdou Industry Co., Ltd. (600400) 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

Jiangsu Hongdou Industry Co., Ltd.

Why is Jiangsu Hongdou Industry Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.95%

The company has been able to generate a Return on Capital Employed (avg) of 0.95% 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 -8.05% and Operating profit at -223.42% over the last 5 years

The company has declared negative results for the last 3 consecutive quarters

PRE-TAX PROFIT(Q) At CNY -107.03 MM has Fallen at -168.87%
NET PROFIT(Q) At CNY -109.68 MM has Fallen at -167.96%
OPERATING CASH FLOW(Y) Lowest at CNY 129.98 MM

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 -17.71%, its profits have fallen by -1546.1%
At the current price, the company has a high dividend yield of 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -17.71% returns in the last 1 year, the stock has also underperformed 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 Jiangsu Hongdou Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is Jiangsu Hongdou Industry Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jiangsu Hongdou Industry Co., Ltd.

41.36%

-0.12

44.80%

China Shanghai Composite

22.72%

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)

-8.05%

EBIT Growth (5y)

-223.42%

EBIT to Interest (avg)

0.76

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

0.66

Tax Ratio

1.38%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.95%

ROE (avg)

1.67%

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

2.22

EV to EBIT

-11.11

EV to EBITDA

-19.01

EV to Capital Employed

2.27

EV to Sales

3.17

PEG Ratio

Dividend Yield

ROCE (Latest)

-20.45%

ROE (Latest)

-19.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

24What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 528.26 MM

RAW MATERIAL COST(Y)

Fallen by -13.52% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.75 times

NET SALES(Q)

At CNY 685.72 MM has Grown at 23.73%

PRE-TAX PROFIT(Q)

Highest at CNY 18 MM

NET PROFIT(Q)

Highest at CNY 5.6 MM

EPS(Q)

Highest at CNY 0

-6What is not working for the Company

ROCE(HY)

Lowest at -19.84%

INTEREST(Q)

At CNY 4.78 MM has Grown at 50.84%

CASH AND EQV(HY)

Lowest at CNY 1,155.29 MM

DEBT-EQUITY RATIO (HY)

Highest at 18.74 %

Here's what is working for Jiangsu Hongdou Industry Co., Ltd.

Pre-Tax Profit

At CNY 18 MM has Grown at 144.77%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 5.6 MM has Grown at 118.55%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 528.26 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

At CNY 685.72 MM has Grown at 23.73%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 18 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 5.6 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 5.75 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 -13.52% (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 Jiangsu Hongdou Industry Co., Ltd.

Interest

At CNY 4.78 MM has Grown at 50.84%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 1,155.29 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 18.74 %

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