Shenzhen Huakong Seg Co. Ltd. (000068) 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 Huakong Seg Co. Ltd.

Why is Shenzhen Huakong Seg Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 31.34% and Operating profit at -25.89% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 19.35% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 31.34% and Operating profit at -25.89% over the last 5 years

Negative results in Sep 25

NET SALES(Q) At CNY 191.46 MM has Fallen at -29.94%
PRE-TAX PROFIT(Q) At CNY -6.87 MM has Fallen at -90.82%
NET PROFIT(Q) At CNY -11.29 MM has Fallen at -124.92%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -12.50%, its profits have fallen by -110.9%

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 Trading & Distributors)

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

Is Shenzhen Huakong Seg Co. Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shenzhen Huakong Seg Co. Ltd.

-7.22%

0.30

30.31%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

31.34%

EBIT Growth (5y)

-25.89%

EBIT to Interest (avg)

-0.89

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.95

Sales to Capital Employed (avg)

0.57

Tax Ratio

20.61%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

19.35%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

5.74

EV to EBIT

-61.29

EV to EBITDA

-83.91

EV to Capital Employed

3.46

EV to Sales

3.79

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.65%

ROE (Latest)

-2.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 398.9 MM

RAW MATERIAL COST(Y)

Fallen by -159.34% (YoY

OPERATING PROFIT(Q)

Highest at CNY -2.68 MM

OPERATING PROFIT MARGIN(Q)

Highest at -1.4 %

-20What is not working for the Company

NET SALES(Q)

At CNY 191.46 MM has Fallen at -29.94%

PRE-TAX PROFIT(Q)

At CNY -6.87 MM has Fallen at -90.82%

NET PROFIT(Q)

At CNY -11.29 MM has Fallen at -124.92%

ROCE(HY)

Lowest at -1.92%

INTEREST(Q)

At CNY 19.69 MM has Grown at 16.48%

Here's what is working for Shenzhen Huakong Seg Co. Ltd.

Operating Cash Flow

Highest at CNY 398.9 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Operating Profit

Highest at CNY -2.68 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at -1.4 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -159.34% (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 Huakong Seg Co. Ltd.

Net Sales

At CNY 191.46 MM has Fallen at -29.94%

over average net sales of the previous four periods of CNY 273.29 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -6.87 MM has Fallen at -90.82%

over average net sales of the previous four periods of CNY -3.6 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -11.29 MM has Fallen at -124.92%

over average net sales of the previous four periods of CNY -5.02 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 19.69 MM has Grown at 16.48%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)