Why is Shunfa Hengye Corp. ?
1
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)
2
Poor long term growth as Net Sales has grown by an annual rate of -28.90% and Operating profit at -45.36% over the last 5 years
3
The company has declared Negative results for the last 4 consecutive quarters
- INTEREST(HY) At CNY 0.64 MM has Grown at 48.35%
- NET PROFIT(HY) At CNY 51.01 MM has Grown at -37.88%
- NET SALES(Q) At CNY 55.46 MM has Fallen at -24.5%
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, High Return
Absolute
Risk Adjusted
Volatility
Shunfa Hengye Corp.
-3.74%
0.83
35.46%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
-28.90%
EBIT Growth (5y)
-45.36%
EBIT to Interest (avg)
40.62
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
25.90%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
14.40%
ROE (avg)
3.22%
Valuation Key Factors 
Factor
Value
P/E Ratio
87
Industry P/E
Price to Book Value
1.28
EV to EBIT
118.39
EV to EBITDA
45.07
EV to Capital Employed
2.00
EV to Sales
10.93
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
1.69%
ROE (Latest)
1.46%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
3What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 221.31 MM
RAW MATERIAL COST(Y)
Fallen by -37.71% (YoY
-28What is not working for the Company
INTEREST(HY)
At CNY 0.64 MM has Grown at 48.35%
NET PROFIT(HY)
At CNY 51.01 MM has Grown at -37.88%
NET SALES(Q)
At CNY 55.46 MM has Fallen at -24.5%
ROCE(HY)
Lowest at 1.48%
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.01%
OPERATING PROFIT(Q)
Lowest at CNY 0.74 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 1.34 %
Here's what is working for Shunfa Hengye Corp.
Operating Cash Flow
Highest at CNY 221.31 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Raw Material Cost
Fallen by -37.71% (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.
Interest
At CNY 0.64 MM has Grown at 48.35%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Sales
At CNY 55.46 MM has Fallen at -24.5%
over average net sales of the previous four periods of CNY 73.46 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Net Profit
At CNY 51.01 MM has Grown at -37.88%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Net Sales
Lowest at CNY 55.46 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY 0.74 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 1.34 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debtors Turnover Ratio
Lowest at 2.01%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






