Hongfa Technology (China) Buy Hold or Sell Recommendation
| 600885 Stock | 32.96 0.51 1.52% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Hongfa Technology Co is 'Buy'. Macroaxis provides Hongfa Technology buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding 600885 positions.
Check out Hongfa Technology Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Hongfa and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Hongfa Technology Co. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
Hongfa |
Execute Hongfa Technology Buy or Sell Advice
The Hongfa recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Hongfa Technology Co. Macroaxis does not own or have any residual interests in Hongfa Technology Co or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Hongfa Technology's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Hongfa Technology Trading Alerts and Improvement Suggestions
| Hongfa Technology is unlikely to experience financial distress in the next 2 years | |
| About 30.0% of the company shares are owned by insiders or employees | |
| Latest headline from news.google.com: Wall Street Stocks Set For Major Upside Predictions - Evrim Aac |
Hongfa Technology Returns Distribution Density
The distribution of Hongfa Technology's historical returns is an attempt to chart the uncertainty of Hongfa Technology's future price movements. The chart of the probability distribution of Hongfa Technology daily returns describes the distribution of returns around its average expected value. We use Hongfa Technology Co price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Hongfa Technology returns is essential to provide solid investment advice for Hongfa Technology.
| Mean Return | 0.41 | Value At Risk | -2.92 | Potential Upside | 5.19 | Standard Deviation | 2.55 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Hongfa Technology historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Hongfa Technology Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | 86.1M | (105.3M) | (1.0B) | (347.5M) | 289.2M | 303.7M | |
| Dividends Paid | 246.4M | 266.7M | 384.8M | 346.4M | 385.6M | 404.9M | |
| Capital Expenditures | 775.4M | 677.4M | 924.8M | 1.5B | 1.0B | 1.1B | |
| Net Income | 704.1M | 832.1M | 1.1B | 1.2B | 1.4B | 1.5B | |
| Investments | (39.5M) | (79.0M) | (3.2M) | (2.0B) | (1.7B) | (1.6B) | |
| Change In Cash | 479.3M | (486.5M) | 754.9M | (343.0M) | 429.4M | 450.8M | |
| Net Borrowings | 459.5M | (126.8M) | (151.9M) | 1.0B | 1.2B | 1.2B | |
| Depreciation | 473.6M | 508.0M | 535.4M | 666.3M | 824.9M | 496.5M | |
| Change To Netincome | 354.0M | 357.2M | 337.4M | (150.7M) | (135.6M) | (128.9M) | |
| End Period Cash Flow | 1.4B | 898.2M | 1.7B | 1.3B | 1.7B | 1.3B | |
| Free Cash Flow | 905.6M | 42.2M | (12.9M) | 75.6M | 1.6B | 1.7B | |
| Other Non Cash Items | 90.9M | 127.7M | 140.9M | 191.2M | 220.2M | 145.3M |
Hongfa Technology Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Hongfa Technology or Electrical Equipment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Hongfa Technology's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Hongfa stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.39 | |
β | Beta against Dow Jones | 0.09 | |
σ | Overall volatility | 2.57 | |
Ir | Information ratio | 0.11 |
Hongfa Technology Volatility Alert
Hongfa Technology Co has relatively low volatility with skewness of 0.92 and kurtosis of 2.42. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Hongfa Technology's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Hongfa Technology's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Hongfa Technology Fundamentals Vs Peers
Comparing Hongfa Technology's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Hongfa Technology's direct or indirect competition across all of the common fundamentals between Hongfa Technology and the related equities. This way, we can detect undervalued stocks with similar characteristics as Hongfa Technology or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Hongfa Technology's fundamental indicators could also be used in its relative valuation, which is a method of valuing Hongfa Technology by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Hongfa Technology to competition |
| Fundamentals | Hongfa Technology | Peer Average |
| Return On Equity | 0.18 | -0.31 |
| Return On Asset | 0.0772 | -0.14 |
| Profit Margin | 0.11 % | (1.27) % |
| Operating Margin | 0.20 % | (5.51) % |
| Current Valuation | 34.59 B | 16.62 B |
| Shares Outstanding | 1.04 B | 571.82 M |
| Shares Owned By Insiders | 30.33 % | 10.09 % |
| Shares Owned By Institutions | 32.11 % | 39.21 % |
| Price To Book | 3.76 X | 9.51 X |
| Price To Sales | 2.51 X | 11.42 X |
| Revenue | 12.93 B | 9.43 B |
| Gross Profit | 3.45 B | 27.38 B |
| EBITDA | 3.25 B | 3.9 B |
| Net Income | 1.39 B | 570.98 M |
| Total Debt | 42.8 M | 5.32 B |
| Book Value Per Share | 8.44 X | 1.93 K |
| Cash Flow From Operations | 2.66 B | 971.22 M |
| Earnings Per Share | 1.50 X | 3.12 X |
| Target Price | 37.42 | |
| Number Of Employees | 15.3 K | 18.84 K |
| Beta | 0.9 | -0.15 |
| Market Capitalization | 34.9 B | 19.03 B |
| Total Asset | 17.72 B | 29.47 B |
| Retained Earnings | 5.67 B | 9.33 B |
| Working Capital | 6.64 B | 1.48 B |
| Net Asset | 17.72 B | |
| Last Dividend Paid | 0.44 |
Hongfa Technology Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Hongfa . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Hongfa Technology Buy or Sell Advice
When is the right time to buy or sell Hongfa Technology Co? Buying financial instruments such as Hongfa Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Hongfa Technology in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Macroaxis Picks Thematic Idea Now
Macroaxis Picks
Daily selected watch list of stocks of large companies handpicked by Macroaxis Team based on their diversification potential. The Macroaxis Picks theme has 50 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Macroaxis Picks Theme or any other thematic opportunities.
| View All Next | Launch |
Other Information on Investing in Hongfa Stock
Hongfa Technology financial ratios help investors to determine whether Hongfa Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Hongfa with respect to the benefits of owning Hongfa Technology security.