Jiangsu Huahong Technology Stock Co., Ltd. (002645) 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 Huahong Technology Stock Co., Ltd.

Why is Jiangsu Huahong Technology Stock Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 20.62% and Operating profit at -202.99% over the last 5 years

With a growth in Net Profit of 141.02%, the company declared Outstanding results in Sep 25

RAW MATERIAL COST(Y) Fallen by -89.83% (YoY)
NET SALES(Q) Highest at CNY 2,301.55 MM
OPERATING PROFIT(Q) Highest at CNY 126.11 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 105.24%, its profits have fallen by -1596.2%

Market Beating Performance

The stock has generated a return of 105.24% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.17%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Jiangsu Huahong Technology Stock Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Jiangsu Huahong Technology Stock Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangsu Huahong Technology Stock Co., Ltd.

79.41%

2.38

59.81%

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)

20.62%

EBIT Growth (5y)

-202.99%

EBIT to Interest (avg)

17.81

Debt to EBITDA (avg)

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

1.28

Tax Ratio

2.49%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.60%

ROE (avg)

6.04%

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

2.67

EV to EBIT

-32.07

EV to EBITDA

-56.48

EV to Capital Employed

2.27

EV to Sales

1.69

PEG Ratio

Dividend Yield

ROCE (Latest)

-7.08%

ROE (Latest)

-8.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly 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

32What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -89.83% (YoY

NET SALES(Q)

Highest at CNY 2,301.55 MM

OPERATING PROFIT(Q)

Highest at CNY 126.11 MM

OPERATING PROFIT MARGIN(Q)

Highest at 5.48 %

PRE-TAX PROFIT(Q)

Highest at CNY 137.43 MM

NET PROFIT(Q)

Highest at CNY 116.89 MM

EPS(Q)

Highest at CNY 0.2

-11What is not working for the Company

INTEREST(HY)

At CNY 32.81 MM has Grown at 27.05%

OPERATING CASH FLOW(Y)

Lowest at CNY -331.06 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.06 times

Here's what is working for Jiangsu Huahong Technology Stock Co., Ltd.

Pre-Tax Profit

At CNY 137.43 MM has Grown at 300.51%

over average net sales of the previous four periods of CNY -68.54 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 116.89 MM has Grown at 268.1%

over average net sales of the previous four periods of CNY -69.54 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 2,301.55 MM has Grown at 52.82%

over average net sales of the previous four periods of CNY 1,506.07 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

Highest at CNY 2,301.55 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 126.11 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 5.48 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 137.43 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 116.89 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.2

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -89.83% (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 Huahong Technology Stock Co., Ltd.

Interest

At CNY 32.81 MM has Grown at 27.05%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -331.06 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Lowest at 7.06 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio