Qingdao Huicheng Environmental Technology Group Co., Ltd. (300779) 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

Qingdao Huicheng Environmental Technology Group Co., Ltd.

Why is Qingdao Huicheng Environmental Technology Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.23%

The company has been able to generate a Return on Capital Employed (avg) of 3.23% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 28.73% and Operating profit at 39.76% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.34% signifying low profitability per unit of shareholders funds

Negative results in Mar 26

INTEREST(HY) At CNY 40.66 MM has Grown at 38.71%
OPERATING CASH FLOW(Y) Lowest at CNY -223.33 MM
PRE-TAX PROFIT(Q) At CNY 6.72 MM has Fallen at -64.47%

With ROE of 3.02%, it has a expensive valuation with a 7.48 Price to Book Value

Over the past year, while the stock has generated a return of -55.35%, its profits have risen by 301.3% ; the PEG ratio of the company is 0.9

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 16.83% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -55.35% returns

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 Chemicals & Petrochemicals)

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

Is Qingdao Huicheng Environmental Technology Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Qingdao Huicheng Environmental Technology Group Co., Ltd.

-56.79%

0.33

81.18%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

28.73%

EBIT Growth (5y)

39.76%

EBIT to Interest (avg)

1.91

Debt to EBITDA (avg)

9.81

Net Debt to Equity (avg)

1.83

Sales to Capital Employed (avg)

0.30

Tax Ratio

20.67%

Dividend Payout Ratio

36.00%

Pledged Shares

Institutional Holding

ROCE (avg)

3.01%

ROE (avg)

4.34%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

236

Industry P/E

Price to Book Value

7.14

EV to EBIT

124.96

EV to EBITDA

60.32

EV to Capital Employed

3.94

EV to Sales

16.58

PEG Ratio

0.83

Dividend Yield

0.10%

ROCE (Latest)

3.16%

ROE (Latest)

3.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly 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

3What is working for the Company

NET PROFIT(9M)

At CNY 8.36 MM has Grown at 60.41%

CASH AND EQV(HY)

Highest at CNY 1,962.63 MM

-40What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -55.87 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.38 times

INTEREST(Q)

At CNY 22.57 MM has Grown at 30.72%

INTEREST COVERAGE RATIO(Q)

Lowest at 211.73

RAW MATERIAL COST(Y)

Grown by 54.13% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.51 times

NET SALES(Q)

Lowest at CNY 226.81 MM

OPERATING PROFIT(Q)

Lowest at CNY 47.78 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 21.07 %

PRE-TAX PROFIT(Q)

Lowest at CNY -26.92 MM

NET PROFIT(Q)

Lowest at CNY -24.55 MM

EPS(Q)

Lowest at CNY -0.09

Here's what is working for Qingdao Huicheng Environmental Technology Group Co., Ltd.

Cash and Eqv

Highest at CNY 1,962.63 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at CNY 62.59 MM

in the last five periods

MOJO Watch

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

Depreciation (CNY MM)

Depreciation

At CNY 62.59 MM has Grown at inf%

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 (CNY MM)

Here's what is not working for Qingdao Huicheng Environmental Technology Group Co., Ltd.

Net Sales

At CNY 226.81 MM has Fallen at -19.04%

over average net sales of the previous four periods of CNY 280.14 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -26.92 MM has Fallen at -220.34%

over average net sales of the previous four periods of CNY 22.37 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -24.55 MM has Fallen at -242.83%

over average net sales of the previous four periods of CNY 17.19 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -55.87 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)

Interest

At CNY 22.57 MM has Grown at 30.72%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 211.73

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 1.38 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at CNY 226.81 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 47.78 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 21.07 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -26.92 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -24.55 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 1.51 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 54.13% (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

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