Mudanjiang Hengfeng Paper Co., Ltd. (600356) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Mudanjiang Hengfeng Paper Co., Ltd.

Why is Mudanjiang Hengfeng Paper Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 9.54% and Operating profit at 4.42% over the last 5 years

Flat results in Mar 25

NET PROFIT(HY) At CNY 33.81 MM has Grown at -51.67%
ROCE(HY) Lowest at 4.75%
INTEREST(Q) At CNY 3.18 MM has Grown at inf%

With ROE of 6.27%, it has a attractive valuation with a 1.05 Price to Book Value

Over the past year, while the stock has generated a return of -13.29%, its profits have risen by 8.6% ; the PEG ratio of the company is 2
At the current price, the company has a high dividend yield of 1.3

Below par performance in long term as well as near term

Along with generating -13.29% returns in the last 1 year, the stock has also underperformed 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 Mudanjiang Hengfeng Paper Co., Ltd. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

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

Is Mudanjiang Hengfeng Paper Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Mudanjiang Hengfeng Paper Co., Ltd.

-13.29%

1.38

28.06%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.54%

EBIT Growth (5y)

4.42%

EBIT to Interest (avg)

11.95

Debt to EBITDA (avg)

0.24

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

0.91

Tax Ratio

24.37%

Dividend Payout Ratio

30.95%

Pledged Shares

Institutional Holding

ROCE (avg)

6.39%

ROE (avg)

5.56%

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

1.05

EV to EBIT

13.77

EV to EBITDA

8.18

EV to Capital Employed

1.05

EV to Sales

0.98

PEG Ratio

1.95

Dividend Yield

1.28%

ROCE (Latest)

7.60%

ROE (Latest)

6.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 297.5 MM

RAW MATERIAL COST(Y)

Fallen by -6.68% (YoY

NET SALES(Q)

At CNY 669.29 MM has Grown at 27.05%

-14What is not working for the Company

NET PROFIT(HY)

At CNY 33.81 MM has Grown at -51.67%

ROCE(HY)

Lowest at 4.75%

INTEREST(Q)

At CNY 3.18 MM has Grown at inf%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,077.48

DEBT-EQUITY RATIO (HY)

Highest at 2.77 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.95%

OPERATING PROFIT(Q)

Lowest at CNY 34.29 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.12 %

Here's what is working for Mudanjiang Hengfeng Paper Co., Ltd.

Operating Cash Flow

Highest at CNY 297.5 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 669.29 MM has Grown at 27.05%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -6.68% (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 Mudanjiang Hengfeng Paper Co., Ltd.

Net Profit

At CNY 33.81 MM has Grown at -51.67%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 3.18 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,077.48

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 34.29 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.12 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 2.77 %

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

Inventory Turnover Ratio

Lowest at 2.95%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio