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 183.17%, 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 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 Ferrous Metals)

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

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Suzhou Hesheng Special Material Co., Ltd.

187.48%

9.52

59.79%

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)

4.38%

EBIT Growth (5y)

5.03%

EBIT to Interest (avg)

10.05

Debt to EBITDA (avg)

2.78

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

1.60

Tax Ratio

14.89%

Dividend Payout Ratio

31.89%

Pledged Shares

Institutional Holding

ROCE (avg)

11.15%

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

Industry P/E

Price to Book Value

11.81

EV to EBIT

69.35

EV to EBITDA

61.64

EV to Capital Employed

10.28

EV to Sales

4.85

PEG Ratio

2.73

Dividend Yield

ROCE (Latest)

14.82%

ROE (Latest)

14.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

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

2What is working for the Company

CASH AND EQV(HY)

Highest at CNY 1,183.62 MM

DEBT-EQUITY RATIO (HY)

Lowest at 16.94 %

-5What is not working for the Company

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

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

Cash and Eqv

Highest at CNY 1,183.62 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 16.94 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Suzhou Hesheng Special Material Co., Ltd.

Operating Cash Flow

Lowest at CNY 143.28 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 567.59 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 567.59 MM has Fallen at -11.13%

over average net sales of the previous four periods of CNY 638.68 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 4.01 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio