Powerlong Real Estate Holdings Ltd. (1238) 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

Poly Property Services Co., Ltd.

Binjiang Service Group Co. Ltd.

Far East Consortium International Ltd.

Powerlong Real Estate Holdings Ltd.

Logan Group Co., Ltd.

Agile Group Holdings Ltd.

Yuexiu Services Group Ltd.

SOHO China Ltd.

C&D Property Management Group Co., Ltd.

Wing Tai Properties Ltd.

Guangzhou R&F Properties Co., Ltd.

Why is Powerlong Real Estate Holdings Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate of -42.48%

The company has declared Negative results for the last 7 consecutive quarters

ROCE(HY) Lowest at -16.13%
RAW MATERIAL COST(Y) Grown by 92.7% (YoY)
CASH AND EQV(HY) Lowest at HKD 8,029.21 MM

With ROE of -10.34%, it has a Very Expensive valuation with a 0.04 Price to Book Value

Over the past year, while the stock has generated a return of -55.36%, its profits have fallen by -166.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -55.36% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How 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 Realty)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Powerlong Real Estate Holdings Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Powerlong Real Estate Holdings Ltd.

-55.36%

-1.07

58.93%

Hang Seng Hong Kong

27.36%

1.03

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.57%

EBIT Growth (5y)

-42.48%

EBIT to Interest (avg)

4.70

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

18.02%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

47.93%

ROE (avg)

5.29%

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

0.04

EV to EBIT

-9.17

EV to EBITDA

-5.97

EV to Capital Employed

-0.25

EV to Sales

-0.24

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

-10.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

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

Not enough Data to analyse Financial Trend

Here's what is working for Powerlong Real Estate Holdings Ltd.

Net Profit

At HKD -590.22 MM has Grown at 63.64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

Inventory Turnover Ratio

Highest at 0.34%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at HKD 222.75 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Depreciation

At HKD 222.75 MM has Grown at 30.83%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for Powerlong Real Estate Holdings Ltd.

Net Sales

Lowest at HKD 10,963.24 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Interest

Highest at HKD 1,302.09 MM

in the last five periods and Increased by 158.96% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

EPS

Lowest at HKD -0.82

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Cash and Eqv

Lowest at HKD 8,029.21 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 156.16 %

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

Raw Material Cost

Grown by 92.7% (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