Zhejiang Huasheng Technology Co., Ltd. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Huasheng Technology Co., Ltd.

Why is Zhejiang Huasheng Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 9.63%

The company has been able to generate a Return on Capital Employed (avg) of 9.63% signifying low profitability per unit of total capital (equity and debt)

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 -8.55% and Operating profit at -30.09% 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 6.12% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -8.55% and Operating profit at -30.09% over the last 5 years

The company has declared negative results in Mar 25 after 4 consecutive negative quarters

INTEREST(9M) At CNY 0.3 MM has Grown at inf%
PRE-TAX PROFIT(Q) At CNY 9.62 MM has Fallen at -52.16%
NET PROFIT(HY) At CNY 12.13 MM has Grown at -31.05%

With ROE of 3.49%, it has a fair valuation with a 0.63 Price to Book Value

Over the past year, while the stock has generated a return of -0.22%, its profits have fallen by -3.7%
At the current price, the company has a high dividend yield of 0.9

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 Specialty Chemicals)

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

Is Zhejiang Huasheng Technology Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Zhejiang Huasheng Technology Co., Ltd.

0.72%

0.34

36.68%

China Shanghai Composite

12.36%

0.86

14.45%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.55%

EBIT Growth (5y)

-30.09%

EBIT to Interest (avg)

62.51

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.20

Sales to Capital Employed (avg)

0.25

Tax Ratio

13.03%

Dividend Payout Ratio

44.46%

Pledged Shares

Institutional Holding

ROCE (avg)

9.63%

ROE (avg)

6.12%

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

0.63

EV to EBIT

14.61

EV to EBITDA

9.14

EV to Capital Employed

0.57

EV to Sales

1.65

PEG Ratio

Dividend Yield

0.88%

ROCE (Latest)

3.93%

ROE (Latest)

3.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

RAW MATERIAL COST(Y)

Fallen by -13.25% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.27%

-16What is not working for the Company

INTEREST(9M)

At CNY 0.3 MM has Grown at inf%

PRE-TAX PROFIT(Q)

At CNY 9.62 MM has Fallen at -52.16%

NET PROFIT(HY)

At CNY 12.13 MM has Grown at -31.05%

INTEREST COVERAGE RATIO(Q)

Lowest at 6,687.46

DEBT-EQUITY RATIO (HY)

Highest at -19.93 %

NET SALES(Q)

Fallen at -13.27%

Here's what is working for Zhejiang Huasheng Technology Co., Ltd.

Inventory Turnover Ratio

Highest at 2.27%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -13.25% (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 Zhejiang Huasheng Technology Co., Ltd.

Interest

At CNY 0.3 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 9.62 MM has Fallen at -52.16%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 8.27 MM has Fallen at -52.93%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 6,687.46

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Fallen at -13.27%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at -19.93 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio