Wuxi Honghui New Materials Technology Co., Ltd. (002802) 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

Wuxi Honghui New Materials Technology Co., Ltd.

Why is Wuxi Honghui New Materials Technology Co., Ltd. ?

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

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

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 -21.41%, its profits have fallen by -36.7%
At the current price, the company has a high dividend yield of 1.7

Below par performance in long term as well as near term

Along with generating -21.41% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wuxi Honghui New Materials Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

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.

-5.29%

0.54

35.54%

China Shanghai Composite

3.23%

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)

-8.57%

EBIT Growth (5y)

-17.82%

EBIT to Interest (avg)

61.76

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.48

Sales to Capital Employed (avg)

0.64

Tax Ratio

12.85%

Dividend Payout Ratio

43.07%

Pledged Shares

Institutional Holding

ROCE (avg)

18.79%

ROE (avg)

11.18%

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

3.00

EV to EBIT

40.29

EV to EBITDA

29.05

EV to Capital Employed

5.90

EV to Sales

4.01

PEG Ratio

Dividend Yield

1.86%

ROCE (Latest)

14.65%

ROE (Latest)

6.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

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

16What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

OPERATING PROFIT MARGIN(Q)

Highest at 17.06 %

DIVIDEND PAYOUT RATIO(Y)

Highest at 66.89%

RAW MATERIAL COST(Y)

Fallen by -11.95% (YoY

CASH AND EQV(HY)

Highest at CNY 768.91 MM

DEBT-EQUITY RATIO (HY)

Lowest at -56.47 %

DIVIDEND PER SHARE(HY)

Highest at CNY 3.17

NET SALES(Q)

Highest at CNY 129.01 MM

OPERATING PROFIT(Q)

Highest at CNY 22.01 MM

PRE-TAX PROFIT(Q)

Highest at CNY 18.32 MM

NET PROFIT(Q)

Highest at CNY 15.54 MM

EPS(Q)

Highest at CNY 0.09

-2What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Wuxi Honghui New Materials Technology Co., Ltd.

Operating Profit Margin

Highest at 17.06 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Sales

Highest at CNY 129.01 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 129.01 MM has Grown at 31.26%

over average net sales of the previous four periods of CNY 98.29 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 22.01 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 18.32 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 15.54 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.09

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 768.91 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -56.47 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend per share

Highest at CNY 3.17

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 66.89%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -11.95% (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

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