ScoreWhy is New Hope Liuhe Co., Ltd. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.45%
- Poor long term growth as Net Sales has grown by an annual rate of 1.26% and Operating profit at -18.11% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
Negative results in Sep 25
- OPERATING CASH FLOW(Y) Lowest at CNY 9,485.05 MM
- INTEREST COVERAGE RATIO(Q) Lowest at 98.59
- OPERATING PROFIT MARGIN(Q) Lowest at 1.7 %
3
With ROE of 10.31%, it has a expensive valuation with a 1.69 Price to Book Value
- Over the past year, while the stock has generated a return of -13.71%, its profits have risen by 140.1% ; the PEG ratio of the company is 0.1
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -13.71% 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 ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is New Hope Liuhe Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
New Hope Liuhe Co., Ltd.
-12.75%
-0.79
20.95%
China Shanghai Composite
13.33%
0.90
14.74%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
1.26%
EBIT Growth (5y)
-18.11%
EBIT to Interest (avg)
-0.98
Debt to EBITDA (avg)
7.77
Net Debt to Equity (avg)
2.33
Sales to Capital Employed (avg)
1.34
Tax Ratio
15.93%
Dividend Payout Ratio
23.06%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
2.45%
ROE (avg)
4.83%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
1.69
EV to EBIT
23.66
EV to EBITDA
12.30
EV to Capital Employed
1.22
EV to Sales
0.94
PEG Ratio
0.12
Dividend Yield
0.25%
ROCE (Latest)
5.17%
ROE (Latest)
10.31%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
NET PROFIT(9M)
Higher at CNY 748.69 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 224.86 %
INVENTORY TURNOVER RATIO(HY)
Highest at 10.11 times
NET SALES(Q)
Highest at CNY 28,879.05 MM
-22What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 9,485.05 MM
INTEREST COVERAGE RATIO(Q)
Lowest at 98.59
OPERATING PROFIT MARGIN(Q)
Lowest at 1.7 %
RAW MATERIAL COST(Y)
Grown by 41.61% (YoY
CASH AND EQV(HY)
Lowest at CNY 14,511.69 MM
OPERATING PROFIT(Q)
Lowest at CNY 490.89 MM
PRE-TAX PROFIT(Q)
Lowest at CNY -31.96 MM
NET PROFIT(Q)
Lowest at CNY -5.73 MM
EPS(Q)
Lowest at CNY 0
Here's what is working for New Hope Liuhe Co., Ltd.
Net Sales
Highest at CNY 28,879.05 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Debt-Equity Ratio
Lowest at 224.86 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 10.11 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for New Hope Liuhe Co., Ltd.
Pre-Tax Profit
At CNY -31.96 MM has Fallen at -106.46%
over average net sales of the previous four periods of CNY 495.18 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY -5.73 MM has Fallen at -100.93%
over average net sales of the previous four periods of CNY 614.7 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Interest Coverage Ratio
Lowest at 98.59
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit Margin
Lowest at 1.7 % and Fallen
In each period in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Operating Cash Flow
Lowest at CNY 9,485.05 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Operating Profit
Lowest at CNY 490.89 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Pre-Tax Profit
Lowest at CNY -31.96 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Net Profit
Lowest at CNY -5.73 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
EPS
Lowest at CNY 0
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)
Cash and Eqv
Lowest at CNY 14,511.69 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Raw Material Cost
Grown by 41.61% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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