ShenZhen HuiJie Group Co., Ltd. (002763) 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 HuiJie Group Co., Ltd.

Why is ShenZhen HuiJie Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.15% and Operating profit at -1.78% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(HY) At CNY 2.49 MM has Grown at 28.89%
OPERATING CASH FLOW(Y) Lowest at CNY 166.99 MM
PRE-TAX PROFIT(Q) At CNY 13.93 MM has Fallen at -65.75%

With ROE of 4.55%, it has a very attractive valuation with a 1.43 Price to Book Value

Over the past year, while the stock has generated a return of 1.30%, its profits have fallen by -45.3%
At the current price, the company has a high dividend yield of 6.5

Underperformed the market in the last 1 year

The stock has generated a return of 1.30% in the last 1 year, much lower than market (China Shanghai Composite) returns of 13.33%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ShenZhen HuiJie Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is ShenZhen HuiJie Group Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

ShenZhen HuiJie Group Co., Ltd.

6.52%

0.00

31.27%

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)

5.15%

EBIT Growth (5y)

-1.78%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.46

Sales to Capital Employed (avg)

1.42

Tax Ratio

44.09%

Dividend Payout Ratio

77.80%

Pledged Shares

Institutional Holding

ROCE (avg)

26.45%

ROE (avg)

10.58%

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

1.43

EV to EBIT

13.53

EV to EBITDA

7.05

EV to Capital Employed

1.82

EV to Sales

0.65

PEG Ratio

Dividend Yield

6.48%

ROCE (Latest)

13.44%

ROE (Latest)

4.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

5What is working for the Company

NET PROFIT(HY)

At CNY 44.97 MM has Grown at 66.32%

RAW MATERIAL COST(Y)

Fallen by -2.26% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 12.98 times

-21What is not working for the Company

INTEREST(HY)

At CNY 2.49 MM has Grown at 28.89%

OPERATING CASH FLOW(Y)

Lowest at CNY 166.99 MM

PRE-TAX PROFIT(Q)

At CNY 13.93 MM has Fallen at -65.75%

NET PROFIT(Q)

At CNY 2.4 MM has Fallen at -85.13%

DEBT-EQUITY RATIO (HY)

Highest at -40.26 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.21 times

NET SALES(Q)

At CNY 656.84 MM has Fallen at -11.69%

Here's what is working for ShenZhen HuiJie Group Co., Ltd.

Debtors Turnover Ratio

Highest at 12.98 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -2.26% (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 HuiJie Group Co., Ltd.

Interest

At CNY 2.49 MM has Grown at 28.89%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 13.93 MM has Fallen at -65.75%

over average net sales of the previous four periods of CNY 40.68 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 2.4 MM has Fallen at -85.13%

over average net sales of the previous four periods of CNY 16.13 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 166.99 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)

Debt-Equity Ratio

Highest at -40.26 % 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

At CNY 656.84 MM has Fallen at -11.69%

over average net sales of the previous four periods of CNY 743.82 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 1.21 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at CNY 0.3 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income