Shenzhen Hongfuhan Technology Co., Ltd. () 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

Shenzhen Hongfuhan Technology Co., Ltd.

Why is Shenzhen Hongfuhan Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 3.65% and Operating profit at -9.72% over the last 5 years

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY -486.03 MM
DEBT-EQUITY RATIO (HY) Highest at 60.77 %
INTEREST COVERAGE RATIO(Q) Lowest at 364.99

With ROE of 3.95%, it has a expensive valuation with a 5.82 Price to Book Value

Over the past year, while the stock has generated a return of 423.43%, its profits have fallen by -33.4%

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 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.

423.43%

9.92

61.83%

China Shanghai Composite

20.36%

1.53

13.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.65%

EBIT Growth (5y)

-9.72%

EBIT to Interest (avg)

26.87

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

0.31

Tax Ratio

10.34%

Dividend Payout Ratio

53.10%

Pledged Shares

Institutional Holding

ROCE (avg)

8.96%

ROE (avg)

6.47%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

147

Industry P/E

Price to Book Value

5.82

EV to EBIT

156.73

EV to EBITDA

90.42

EV to Capital Employed

6.20

EV to Sales

12.82

PEG Ratio

Dividend Yield

ROCE (Latest)

3.96%

ROE (Latest)

3.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

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

17What is working for the Company

ROCE(HY)

Highest at 6.15%

NET SALES(Q)

At CNY 282.09 MM has Grown at 62.75%

RAW MATERIAL COST(Y)

Fallen by -40.02% (YoY

NET PROFIT(Q)

At CNY 36.62 MM has Grown at 100.08%

-19What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -486.03 MM

DEBT-EQUITY RATIO (HY)

Highest at 60.77 %

INTEREST COVERAGE RATIO(Q)

Lowest at 364.99

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.3 times

INTEREST(Q)

Highest at CNY 10.01 MM

Here's what is working for Shenzhen Hongfuhan Technology Co., Ltd.

Net Sales

At CNY 282.09 MM has Grown at 62.75%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Profit

At CNY 36.62 MM has Grown at 100.08%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -40.02% (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 Shenzhen Hongfuhan Technology Co., Ltd.

Interest

At CNY 10.01 MM has Grown at 51.36%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 364.99

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 60.77 % 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

Operating Cash Flow

Lowest at CNY -486.03 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 10.01 MM

in the last five periods and Increased by 51.36% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 3.3 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio