SZSE:002064

Stock Analysis Report

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Executive Summary

Huafon Chemical Co., Ltd. produces and sells spandex in China. More Details


Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

How has Huafon Chemical's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 002064 is more volatile than 75% of CN stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 002064's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of CN stocks.


Market Performance


7 Day Return

-8.5%

2064

-6.6%

CN Chemicals

-5.1%

CN Market


1 Year Return

117.6%

2064

43.0%

CN Chemicals

20.7%

CN Market

Return vs Industry: 002064 exceeded the CN Chemicals industry which returned 40.8% over the past year.

Return vs Market: 002064 exceeded the CN Market which returned 19.1% over the past year.


Shareholder returns

2064IndustryMarket
7 Day-8.5%-6.6%-5.1%
30 Day-8.4%-1.1%-4.5%
90 Day39.4%8.2%-1.8%
1 Year119.6%117.6%45.1%43.0%22.6%20.7%
3 Year155.1%149.7%22.5%17.5%20.6%14.7%
5 Year172.9%166.1%51.6%43.0%40.3%30.8%

Long-Term Price Volatility Vs. Market

How volatile is Huafon Chemical's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Huafon Chemical undervalued compared to its fair value and its price relative to the market?

35.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 002064 (CN¥13.01) is trading below our estimate of fair value (CN¥20.02)

Significantly Below Fair Value: 002064 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 002064 is good value based on its PE Ratio (33.6x) compared to the CN Chemicals industry average (36.3x).

PE vs Market: 002064 is good value based on its PE Ratio (33.6x) compared to the CN market (34.6x).


Price to Earnings Growth Ratio

PEG Ratio: 002064 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 002064 is overvalued based on its PB Ratio (5.7x) compared to the CN Chemicals industry average (2.8x).


Next Steps

Future Growth

How is Huafon Chemical forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

28.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 002064's forecast earnings growth (28.6% per year) is above the savings rate (3.3%).

Earnings vs Market: 002064's earnings (28.6% per year) are forecast to grow faster than the CN market (24.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 002064's revenue (18.1% per year) is forecast to grow slower than the CN market (18.1% per year).

High Growth Revenue: 002064's revenue (18.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 002064's Return on Equity is forecast to be high in 3 years time (22.6%)


Next Steps

Past Performance

How has Huafon Chemical performed over the past 5 years?

53.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 002064 has high quality earnings.

Growing Profit Margin: 002064's current net profit margins (12.7%) are lower than last year (13.4%).


Past Earnings Growth Analysis

Earnings Trend: 002064's earnings have grown significantly by 53.7% per year over the past 5 years.

Accelerating Growth: 002064's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 002064 had negative earnings growth (-40.7%) over the past year, making it difficult to compare to the Chemicals industry average (5.2%).


Return on Equity

High ROE: 002064's Return on Equity (16.3%) is considered low.


Next Steps

Financial Health

How is Huafon Chemical's financial position?


Financial Position Analysis

Short Term Liabilities: 002064's short term assets (CN¥8.8B) exceed its short term liabilities (CN¥5.1B).

Long Term Liabilities: 002064's short term assets (CN¥8.8B) exceed its long term liabilities (CN¥2.1B).


Debt to Equity History and Analysis

Debt Level: 002064's debt to equity ratio (30.4%) is considered satisfactory.

Reducing Debt: 002064's debt to equity ratio has reduced from 40.1% to 30.4% over the past 5 years.

Debt Coverage: 002064's debt is well covered by operating cash flow (99%).

Interest Coverage: 002064 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Huafon Chemical current dividend yield, its reliability and sustainability?

0.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 002064's dividend (0.38%) isn’t notable compared to the bottom 25% of dividend payers in the CN market (0.4%).

High Dividend: 002064's dividend (0.38%) is low compared to the top 25% of dividend payers in the CN market (1.76%).


Stability and Growth of Payments

Stable Dividend: 002064's dividend payments have been volatile in the past 10 years.

Growing Dividend: 002064's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.9%), 002064's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 002064's dividends in 3 years are forecast to be well covered by earnings (33% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average board tenure


CEO

Jichu Pan

no data

Tenure

CN¥940,700

Compensation

Mr. Jichu Pan served as the Non-Independent Director of Huafon Chemical Co., Ltd. (formerly known as Zhejiang Huafeng Spandex Co., Ltd). and serves as its General Manager.


Board Members

NamePositionTenureCompensationOwnership
Rui Zhuo
Supervisorno datano datano data
Wang Li
Non-Employee Representative Supervisor3.83yrsno datano data
Chu Yuxi
Non-Employee Representative Supervisor3.83yrsno datano data
Gaoming Jiang
Independent Directorno datano datano data
Qin Zhu
Independent Directorno datano datano data
Min Zhao
Independent Directorno datano datano data
Kai Lin
Non-Employee Representative Supervisorno datano datano data
Feiyu You
Non-Independent Director0.83yrno datano data
Feifeng You
Non-Independent Director0.83yrno datano data
Qiwei Ye
Non-Independent Director0.83yrno datano data

0.8yrs

Average Tenure

Experienced Board: 002064's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Huafon Chemical Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Huafon Chemical Co., Ltd.
  • Ticker: 2064
  • Exchange: SZSE
  • Founded: 1999
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: CN¥61.348b
  • Shares outstanding: 4.63b
  • Website: https://www.huafeng.com

Number of Employees


Location

  • Huafon Chemical Co., Ltd.
  • No. 1788, Kaifaqu Road
  • Economic Development Zone
  • Ruian
  • Zhejiang Province
  • 325206
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2064SZSE (Shenzhen Stock Exchange)YesDomestic SharesCNCNYAug 2006
2064XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)YesDomestic SharesCNCNYAug 2006

Biography

Huafon Chemical Co., Ltd. produces and sells spandex in China. It offers Qianxi spandex yarn, a PU elastic fiber for use in the fields of underwear, swimming suits, socks, jeans, leisure sportswear, medica...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/08 09:09
End of Day Share Price2021/03/08 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.