Shunfa Hengye Corp. (000631) 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

Shunfa Hengye Corp.

Why is Shunfa Hengye Corp. ?

Poor Management Efficiency with a low ROCE of 14.40%

The company has been able to generate a Return on Capital Employed (avg) of 14.40% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -5.40% and Operating profit at -25.15% over the last 5 years

With a fall in PBT of -41.48%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 3 consecutive quarters
ROCE(HY) Lowest at 0.89%
INTEREST(Q) At CNY 5.25 MM has Grown at 22.04%
INTEREST COVERAGE RATIO(Q) Lowest at 210.82

With ROE of 1.07%, it has a expensive valuation with a 1.41 Price to Book Value

Over the past year, while the stock has generated a return of 6.21%, its profits have fallen by -45%

Underperformed the market in the last 1 year

The stock has generated a return of 6.21% in the last 1 year, much lower than market (China Shanghai Composite) returns of 23.91%

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 Realty)

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

Is Shunfa Hengye Corp. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shunfa Hengye Corp.

6.21%

0.54

41.33%

China Shanghai Composite

23.91%

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)

-5.40%

EBIT Growth (5y)

-25.15%

EBIT to Interest (avg)

40.62

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

25.90%

Dividend Payout Ratio

56.18%

Pledged Shares

Institutional Holding

ROCE (avg)

14.40%

ROE (avg)

3.22%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

132

Industry P/E

Price to Book Value

1.41

EV to EBIT

69.20

EV to EBITDA

22.79

EV to Capital Employed

2.50

EV to Sales

7.66

PEG Ratio

Dividend Yield

0.46%

ROCE (Latest)

3.61%

ROE (Latest)

1.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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 -22.47% (YoY

-34What is not working for the Company

ROCE(HY)

Lowest at 0.89%

INTEREST(Q)

At CNY 5.25 MM has Grown at 22.04%

INTEREST COVERAGE RATIO(Q)

Lowest at 210.82

NET PROFIT(Q)

At CNY 7.08 MM has Fallen at -54.83%

DEBT-EQUITY RATIO (HY)

Highest at -72.42 %

NET SALES(Q)

Lowest at CNY 104.07 MM

OPERATING PROFIT(Q)

Lowest at CNY 11.08 MM

PRE-TAX PROFIT(Q)

At CNY 17.7 MM has Fallen at -41.48%

Here's what is working for Shunfa Hengye Corp.

Raw Material Cost

Fallen by -22.47% (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 Shunfa Hengye Corp.

Net Sales

At CNY 104.07 MM has Fallen at -27.29%

over average net sales of the previous four periods of CNY 143.13 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 5.25 MM has Grown at 22.04%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 210.82

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 7.08 MM has Fallen at -54.83%

over average net sales of the previous four periods of CNY 15.67 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 104.07 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 11.08 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

At CNY 17.7 MM has Fallen at -41.48%

over average net sales of the previous four periods of CNY 30.24 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at -72.42 %

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