Why is Wuxi Honghui New Materials Technology Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of -8.57% and Operating profit at -17.82% over the last 5 years
2
Flat results in Mar 26
- NET PROFIT(9M) At CNY 31.46 MM has Grown at -25.52%
- DEBTORS TURNOVER RATIO(HY) Lowest at 2.8 times
- NET SALES(Q) Lowest at CNY 93.61 MM
3
With ROE of 6.29%, it has a expensive valuation with a 3.35 Price to Book Value
- Over the past year, while the stock has generated a return of -9.43%, its profits have fallen by -36.7%
- At the current price, the company has a high dividend yield of 1.7
4
Below par performance in long term as well as near term
- Along with generating -9.43% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
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 Specialty Chemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Wuxi Honghui New Materials Technology Co., Ltd. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Wuxi Honghui New Materials Technology Co., Ltd.
-15.41%
0.88
35.20%
China Shanghai Composite
21.43%
1.55
13.83%
Quality key factors
Factor
Value
Sales Growth (5y)
-8.57%
EBIT Growth (5y)
-17.82%
EBIT to Interest (avg)
74.82
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.48
Sales to Capital Employed (avg)
0.64
Tax Ratio
14.02%
Dividend Payout Ratio
43.07%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
20.60%
ROE (avg)
11.18%
Valuation Key Factors 
Factor
Value
P/E Ratio
53
Industry P/E
Price to Book Value
3.35
EV to EBIT
46.02
EV to EBITDA
33.18
EV to Capital Employed
6.74
EV to Sales
4.58
PEG Ratio
NA
Dividend Yield
1.67%
ROCE (Latest)
14.65%
ROE (Latest)
6.29%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Bullish
Technical Movement
9What is working for the Company
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
OPERATING CASH FLOW(Y)
Highest at CNY 91.02 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -59.11 %
PRE-TAX PROFIT(Q)
Highest at CNY 14.87 MM
NET PROFIT(Q)
Highest at CNY 12.48 MM
EPS(Q)
Highest at CNY 0.07
-9What is not working for the Company
NET PROFIT(9M)
At CNY 31.46 MM has Grown at -25.52%
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.8 times
NET SALES(Q)
Lowest at CNY 93.61 MM
OPERATING PROFIT(Q)
Lowest at CNY 10.3 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 11 %
Here's what is working for Wuxi Honghui New Materials Technology Co., Ltd.
Operating Cash Flow
Highest at CNY 91.02 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Pre-Tax Profit
Highest at CNY 14.87 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 12.48 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.07
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Debt-Equity Ratio
Lowest at -59.11 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Wuxi Honghui New Materials Technology Co., Ltd.
Net Sales
Lowest at CNY 93.61 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY 10.3 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 11 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debtors Turnover Ratio
Lowest at 2.8 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






