Suzhou Hesheng Special Material Co., Ltd. (002290) 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

Suzhou Hesheng Special Material Co., Ltd.

Why is Suzhou Hesheng Special Material Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 4.38% and Operating profit at 5.03% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 13.03% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.38% and Operating profit at 5.03% over the last 5 years

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 143.28 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 4.01 times
NET SALES(Q) Lowest at CNY 567.59 MM

With ROE of 14.88%, it has a very expensive valuation with a 11.81 Price to Book Value

Over the past year, while the stock has generated a return of 174.32%, its profits have risen by 29% ; the PEG ratio of the company is 2.7

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Suzhou Hesheng Special Material Co., Ltd. should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

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

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

Is Suzhou Hesheng Special Material Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Suzhou Hesheng Special Material Co., Ltd.

86.46%

9.22

60.81%

China Shanghai Composite

8.25%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.38%

EBIT Growth (5y)

5.03%

EBIT to Interest (avg)

18.05

Debt to EBITDA (avg)

2.58

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

1.58

Tax Ratio

12.25%

Dividend Payout Ratio

31.89%

Pledged Shares

Institutional Holding

ROCE (avg)

10.61%

ROE (avg)

13.03%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

143

Industry P/E

Price to Book Value

21.22

EV to EBIT

123.86

EV to EBITDA

110.08

EV to Capital Employed

18.36

EV to Sales

8.66

PEG Ratio

4.91

Dividend Yield

0.24%

ROCE (Latest)

14.82%

ROE (Latest)

14.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

14What is working for the Company

ROCE(HY)

Highest at 20.74%

RAW MATERIAL COST(Y)

Fallen by -1.43% (YoY

CASH AND EQV(HY)

Highest at CNY 1,011.07 MM

OPERATING PROFIT(Q)

Highest at CNY 66.07 MM

PRE-TAX PROFIT(Q)

Highest at CNY 100.8 MM

NET PROFIT(Q)

Highest at CNY 93.11 MM

EPS(Q)

Highest at CNY 0.38

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 109.19 MM

INTEREST(Q)

Highest at CNY 1.49 MM

Here's what is working for Suzhou Hesheng Special Material Co., Ltd.

Pre-Tax Profit

At CNY 100.8 MM has Grown at 127.01%

over average net sales of the previous four periods of CNY 44.4 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 93.11 MM has Grown at 139.47%

over average net sales of the previous four periods of CNY 38.88 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Profit

Highest at CNY 66.07 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 100.8 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 93.11 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.38

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 1,011.07 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -1.43% (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 Suzhou Hesheng Special Material Co., Ltd.

Interest

At CNY 1.49 MM has Grown at 43.92%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 109.19 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 1.49 MM

in the last five periods and Increased by 43.92% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)