Zhuhai Huafa Properties Co., Ltd. (600325) 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

Zhuhai Huafa Properties Co., Ltd.

Why is Zhuhai Huafa Properties Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.71%

The company has been able to generate a Return on Capital Employed (avg) of 3.71% 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 12.70% and Operating profit at -18.50% 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 20.72% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 12.70% and Operating profit at -18.50% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

NET PROFIT(Q) At CNY -69.57 MM has Fallen at -183.67%
ROCE(HY) Lowest at -1.39%
CASH AND EQV(HY) Lowest at CNY 64,189.67 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -28.99%, its profits have fallen by -48%

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 Realty)

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

Is Zhuhai Huafa Properties Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhuhai Huafa Properties Co., Ltd.

-33.63%

-1.44

30.86%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.70%

EBIT Growth (5y)

-18.50%

EBIT to Interest (avg)

3.58

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

52.85%

Dividend Payout Ratio

30.08%

Pledged Shares

Institutional Holding

ROCE (avg)

3.71%

ROE (avg)

20.72%

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

0.60

EV to EBIT

87.20

EV to EBITDA

65.08

EV to Capital Employed

0.94

EV to Sales

2.14

PEG Ratio

Dividend Yield

2.26%

ROCE (Latest)

1.08%

ROE (Latest)

4.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

14What is working for the Company

NET SALES(Q)

At CNY 13,551.67 MM has Grown at 101.09%

PRE-TAX PROFIT(Q)

At CNY 371.49 MM has Grown at 571.75%

RAW MATERIAL COST(Y)

Fallen by -19.51% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 0.28 times

OPERATING PROFIT MARGIN(Q)

Highest at 6.3 %

-22What is not working for the Company

NET PROFIT(Q)

At CNY -69.57 MM has Fallen at -183.67%

ROCE(HY)

Lowest at -1.39%

CASH AND EQV(HY)

Lowest at CNY 64,189.67 MM

INTEREST(Q)

Highest at CNY 600.97 MM

Here's what is working for Zhuhai Huafa Properties Co., Ltd.

Net Sales

At CNY 13,551.67 MM has Grown at 101.09%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 371.49 MM has Grown at 571.75%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Profit Margin

Highest at 6.3 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Inventory Turnover Ratio

Highest at 0.28 times

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 -19.51% (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 Zhuhai Huafa Properties Co., Ltd.

Net Profit

At CNY -69.57 MM has Fallen at -183.67%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 600.97 MM has Grown at 175.59%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 600.97 MM

in the last five periods and Increased by 175.59% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 64,189.67 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents