Why is Wuxi Honghui New Materials Technology Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of -1.23% and Operating profit at -9.95% over the last 5 years
2
With a fall in Net Sales of -14.39%, the company declared Very Negative results in Mar 25
- INTEREST(9M) At CNY 0.01 MM has Grown at 178.25%
- OPERATING CASH FLOW(Y) Lowest at CNY 22.59 MM
- NET SALES(Q) At CNY 92.99 MM has Fallen at -17.67%
3
With ROE of 8.23%, it has a very expensive valuation with a 3.64 Price to Book Value
- Over the past year, while the stock has generated a return of 9.92%, its profits have risen by 5.4% ; the PEG ratio of the company is 8.2
- At the current price, the company has a high dividend yield of 1.7
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, High Return
Absolute
Risk Adjusted
Volatility
Wuxi Honghui New Materials Technology Co., Ltd.
0.15%
1.20
40.62%
China Shanghai Composite
15.19%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
-1.23%
EBIT Growth (5y)
-9.95%
EBIT to Interest (avg)
74.82
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.48
Sales to Capital Employed (avg)
0.63
Tax Ratio
14.02%
Dividend Payout Ratio
66.67%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
20.60%
ROE (avg)
11.18%
Valuation Key Factors 
Factor
Value
P/E Ratio
44
Industry P/E
Price to Book Value
3.64
EV to EBIT
36.55
EV to EBITDA
26.70
EV to Capital Employed
6.49
EV to Sales
4.49
PEG Ratio
8.16
Dividend Yield
1.75%
ROCE (Latest)
17.77%
ROE (Latest)
8.23%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
11What is working for the Company
NET SALES(HY)
At CNY 204.45 MM has Grown at 19.56%
NET PROFIT(HY)
At CNY 25.65 MM has Grown at 65.92%
RAW MATERIAL COST(Y)
Fallen by -36.12% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 14.42%
-16What is not working for the Company
INTEREST(9M)
At CNY 0.01 MM has Grown at 178.25%
OPERATING CASH FLOW(Y)
Lowest at CNY 22.59 MM
NET SALES(Q)
At CNY 92.99 MM has Fallen at -17.67%
INTEREST COVERAGE RATIO(Q)
Lowest at 325,285.57
Here's what is working for Wuxi Honghui New Materials Technology Co., Ltd.
Net Profit
At CNY 25.65 MM has Grown at 65.92%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Inventory Turnover Ratio
Highest at 14.42%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -36.12% (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 Wuxi Honghui New Materials Technology Co., Ltd.
Interest
At CNY 0.01 MM has Grown at 246.14%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Sales
At CNY 92.99 MM has Fallen at -17.67%
over average net sales of the previous four periods of CNY 112.95 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Operating Cash Flow
Lowest at CNY 22.59 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Interest Coverage Ratio
Lowest at 325,285.57
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest






