Why is Shenzhen Hongfuhan Technology Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 4.50% and Operating profit at -5.38% over the last 5 years
2
Negative results in Mar 25
- NET PROFIT(HY) At CNY 17.6 MM has Grown at -45.68%
- INTEREST(HY) At CNY 2.75 MM has Grown at 64.19%
- DEBT-EQUITY RATIO (HY) Highest at -16.36 %
3
With ROE of 4.41%, it has a expensive valuation with a 1.40 Price to Book Value
- Over the past year, while the stock has generated a return of 84.68%, its profits have fallen by -9.8%
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 Industrial Manufacturing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Shenzhen Hongfuhan Technology Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Shenzhen Hongfuhan Technology Co., Ltd.
-100.0%
3.07
59.54%
China Shanghai Composite
15.44%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
4.50%
EBIT Growth (5y)
-5.38%
EBIT to Interest (avg)
26.87
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.17
Sales to Capital Employed (avg)
0.32
Tax Ratio
10.34%
Dividend Payout Ratio
65.62%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.96%
ROE (avg)
6.47%
Valuation Key Factors 
Factor
Value
P/E Ratio
32
Industry P/E
Price to Book Value
1.40
EV to EBIT
32.64
EV to EBITDA
17.18
EV to Capital Employed
1.45
EV to Sales
2.92
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
4.44%
ROE (Latest)
4.41%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Bullish
Bullish
OBV
No Trend
Mildly Bullish
Technical Movement
5What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 4.79%
DEBTORS TURNOVER RATIO(HY)
Highest at 2.47%
NET SALES(Q)
At CNY 171.61 MM has Grown at 33.2%
-20What is not working for the Company
NET PROFIT(HY)
At CNY 17.6 MM has Grown at -45.68%
INTEREST(HY)
At CNY 2.75 MM has Grown at 64.19%
DEBT-EQUITY RATIO
(HY)
Highest at -16.36 %
RAW MATERIAL COST(Y)
Grown by 16.6% (YoY
PRE-TAX PROFIT(Q)
Fallen at -33.12%
Here's what is working for Shenzhen Hongfuhan Technology Co., Ltd.
Net Sales
At CNY 171.61 MM has Grown at 33.2%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Inventory Turnover Ratio
Highest at 4.79%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 2.47%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Shenzhen Hongfuhan Technology Co., Ltd.
Interest
At CNY 2.75 MM has Grown at 64.19%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debt-Equity Ratio
Highest at -16.36 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Pre-Tax Profit
Fallen at -33.12%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Net Profit
Fallen at -31.87%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
Raw Material Cost
Grown by 16.6% (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
Non Operating Income
Highest at CNY 0.23 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






