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. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 8.30% and Operating profit at 17.32% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
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 8.30% and Operating profit at 17.32% over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 100.76 MM
INTEREST(Q) At CNY 1.18 MM has Grown at 40.59%

With ROE of 14.28%, it has a expensive valuation with a 10.77 Price to Book Value

Over the past year, while the stock has generated a return of 102.06%, its profits have risen by 48.6% ; the PEG ratio of the company is 1.6

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.

112.27%

5.74

55.95%

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)

8.30%

EBIT Growth (5y)

17.32%

EBIT to Interest (avg)

10.05

Debt to EBITDA (avg)

2.78

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

1.61

Tax Ratio

14.89%

Dividend Payout Ratio

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

10.77

EV to EBIT

73.60

EV to EBITDA

60.22

EV to Capital Employed

8.82

EV to Sales

3.95

PEG Ratio

1.55

Dividend Yield

ROCE (Latest)

11.99%

ROE (Latest)

14.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly 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

10What is working for the Company

NET PROFIT(HY)

At CNY 93.13 MM has Grown at 60.76%

ROCE(HY)

Highest at 17.94%

RAW MATERIAL COST(Y)

Fallen by -54.34% (YoY

CASH AND EQV(HY)

Highest at CNY 1,014.98 MM

DEBT-EQUITY RATIO (HY)

Lowest at 21.9 %

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 100.76 MM

INTEREST(Q)

At CNY 1.18 MM has Grown at 40.59%

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

Net Profit

At CNY 93.13 MM has Grown at 60.76%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 1,014.98 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 21.9 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -54.34% (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 1.18 MM has Grown at 40.59%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 100.76 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)