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

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 23.49% and Operating profit at 11.63% over the last 5 years
The company is Net-Debt Free
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 23.49% and Operating profit at 11.63% over the last 5 years

With a fall in EPS of -30.64%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 5 consecutive quarters
NET PROFIT(HY) At CNY -22.61 MM has Grown at -131.92%
OPERATING CASH FLOW(Y) Lowest at CNY 199.89 MM
ROCE(HY) Lowest at -16.5%

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 -1.85%, its profits have fallen by -593.9%

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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen Huakong Seg Co. Ltd.

-3.65%

0.27

36.57%

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)

23.49%

EBIT Growth (5y)

11.63%

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)

0.60

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

6.74

EV to EBIT

-231.87

EV to EBITDA

-726.25

EV to Capital Employed

3.63

EV to Sales

6.23

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.56%

ROE (Latest)

-15.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -140.17% (YoY

-28What is not working for the Company

NET PROFIT(HY)

At CNY -22.61 MM has Grown at -131.92%

OPERATING CASH FLOW(Y)

Lowest at CNY 199.89 MM

ROCE(HY)

Lowest at -16.5%

CASH AND EQV(HY)

Lowest at CNY 120.64 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.65 times

NET SALES(Q)

Lowest at CNY 48.39 MM

OPERATING PROFIT(Q)

Lowest at CNY -15.47 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -31.96 %

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

Raw Material Cost

Fallen by -140.17% (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 Profit

At CNY -22.61 MM has Grown at -131.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 48.39 MM has Fallen at -76.75%

over average net sales of the previous four periods of CNY 208.11 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 199.89 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 48.39 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -15.47 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -31.96 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 120.64 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 0.65 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio