Shandong Hualu-Hengsheng Chemical Co., Ltd. (600426) 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

Shandong Hualu-Hengsheng Chemical Co., Ltd.

Why is Shandong Hualu-Hengsheng Chemical Co., Ltd. ?

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At CNY 126.02 MM has Grown at 25.83%
OPERATING CASH FLOW(Y) Lowest at CNY 4,767.76 MM
ROCE(HY) Lowest at 11.49%

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 Specialty Chemicals)

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

Is Shandong Hualu-Hengsheng Chemical Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shandong Hualu-Hengsheng Chemical Co., Ltd.

29.94%

0.04

29.59%

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)

20.29%

EBIT Growth (5y)

11.88%

EBIT to Interest (avg)

47.89

Debt to EBITDA (avg)

0.49

Net Debt to Equity (avg)

0.29

Sales to Capital Employed (avg)

0.78

Tax Ratio

16.85%

Dividend Payout Ratio

32.53%

Pledged Shares

Institutional Holding

ROCE (avg)

21.43%

ROE (avg)

18.43%

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

1.66

EV to EBIT

14.66

EV to EBITDA

8.62

EV to Capital Employed

1.51

EV to Sales

1.90

PEG Ratio

Dividend Yield

2.40%

ROCE (Latest)

10.31%

ROE (Latest)

11.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-27What is not working for the Company

INTEREST(HY)

At CNY 126.02 MM has Grown at 25.83%

OPERATING CASH FLOW(Y)

Lowest at CNY 4,767.76 MM

ROCE(HY)

Lowest at 11.49%

DEBT-EQUITY RATIO (HY)

Highest at 28.88 %

INTEREST COVERAGE RATIO(Q)

Lowest at 1,559.99

OPERATING PROFIT MARGIN(Q)

Lowest at 12.14 %

RAW MATERIAL COST(Y)

Grown by 26.09% (YoY

CASH AND EQV(HY)

Lowest at CNY 3,419.36 MM

NET SALES(Q)

At CNY 7,719.71 MM has Fallen at -9.25%

OPERATING PROFIT(Q)

Lowest at CNY 937.3 MM

PRE-TAX PROFIT(Q)

Lowest at CNY 944.09 MM

NET PROFIT(Q)

Lowest at CNY 706.86 MM

EPS(Q)

Lowest at CNY 0.33

Here's what is not working for Shandong Hualu-Hengsheng Chemical Co., Ltd.

Interest

At CNY 126.02 MM has Grown at 25.83%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 4,767.76 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 Coverage Ratio

Lowest at 1,559.99

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 12.14 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 28.88 % and Grown

In each half year 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

Net Sales

Lowest at CNY 7,719.71 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 7,719.71 MM has Fallen at -9.25%

over average net sales of the previous four periods of CNY 8,506.15 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 937.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY 944.09 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 706.86 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.33

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 3,419.36 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 26.09% (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