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 -49.51%, 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 23.91% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -49.51% 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, Medium Return

Absolute

Risk Adjusted

Volatility

Qingdao Huicheng Environmental Technology Group Co., Ltd.

-50.31%

0.34

78.48%

China Shanghai Composite

21.43%

1.73

13.79%

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)

3.13

Debt to EBITDA (avg)

8.21

Net Debt to Equity (avg)

1.83

Sales to Capital Employed (avg)

0.30

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

35.99%

Pledged Shares

Institutional Holding

ROCE (avg)

3.23%

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

248

Industry P/E

Price to Book Value

7.48

EV to EBIT

130.07

EV to EBITDA

62.79

EV to Capital Employed

4.10

EV to Sales

17.26

PEG Ratio

0.87

Dividend Yield

0.05%

ROCE (Latest)

3.16%

ROE (Latest)

3.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

15What is working for the Company

NET PROFIT(HY)

Higher at CNY 32.91 MM

RAW MATERIAL COST(Y)

Fallen by -45.28% (YoY

CASH AND EQV(HY)

Highest at CNY 1,326.96 MM

-21What is not working for the Company

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%

NET PROFIT(Q)

At CNY 2.13 MM has Fallen at -85.69%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.57 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.03 times

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

Cash and Eqv

Highest at CNY 1,326.96 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -45.28% (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 Qingdao Huicheng Environmental Technology Group Co., Ltd.

Interest

At CNY 40.66 MM has Grown at 38.71%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 6.72 MM has Fallen at -64.47%

over average net sales of the previous four periods of CNY 18.92 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 2.13 MM has Fallen at -85.69%

over average net sales of the previous four periods of CNY 14.9 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -223.33 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)

Inventory Turnover Ratio

Lowest at 1.57 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

Debtors Turnover Ratio

Lowest at 2.03 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio