Hongrun Construction (China) Buy Hold or Sell Recommendation
| 002062 Stock | 4.36 0.04 0.91% |
Assuming the 90 days trading horizon and your conservative risk appetite, our recommendation regarding Hongrun Construction Group is 'Strong Sell'. Macroaxis provides Hongrun Construction buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding 002062 positions.
Check out Hongrun Construction 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 Hongrun and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Hongrun Construction Group. 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.
Hongrun |
Execute Hongrun Construction Buy or Sell Advice
The Hongrun recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Hongrun Construction Group. Macroaxis does not own or have any residual interests in Hongrun Construction Group or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Hongrun Construction's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Good | Details | |
Volatility | Moderately volatile | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost neglects market trends | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Hongrun Construction Trading Alerts and Improvement Suggestions
| About 60.0% of the company shares are owned by insiders or employees |
Hongrun Construction Returns Distribution Density
The distribution of Hongrun Construction's historical returns is an attempt to chart the uncertainty of Hongrun Construction's future price movements. The chart of the probability distribution of Hongrun Construction daily returns describes the distribution of returns around its average expected value. We use Hongrun Construction Group price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Hongrun Construction returns is essential to provide solid investment advice for Hongrun Construction.
| Mean Return | 0.36 | Value At Risk | -3.27 | Potential Upside | 4.27 | Standard Deviation | 2.74 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Hongrun Construction 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.
Hongrun Construction Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Capital Expenditures | 126.4M | 179.4M | 62.1M | 116.5M | 227.6M | 152.4M | |
| Net Income | 350.8M | 414.0M | 399.7M | 364.4M | 339.1M | 249.8M | |
| Dividends Paid | 315.6M | 257.9M | 298.7M | 267.8M | 223.8M | 259.9M | |
| Change To Inventory | (252.1M) | (278.0M) | 72.2M | 1.2B | 89.3M | 84.8M | |
| Investments | (303.1M) | (75.4M) | (151.4M) | (160.5M) | (186.3M) | (195.6M) | |
| Change In Cash | 341.6M | (51.8M) | (321.1M) | 395.1M | 4.2M | 4.0M | |
| Net Borrowings | 149.2M | (2.3M) | (684.0M) | 61.3M | 70.5M | 74.0M | |
| Depreciation | 183.8M | 95.2M | 129.2M | 130.0M | 122.2M | 128.1M | |
| Change To Netincome | 28.5M | 299.6M | 382.9M | 259.5M | 298.4M | 293.7M | |
| End Period Cash Flow | 2.6B | 2.6B | 2.3B | 2.6B | 2.7B | 2.8B | |
| Free Cash Flow | 978.1M | 937.8M | 350.2M | 1.1B | 785.0M | 845.0M | |
| Other Non Cash Items | 202.8M | 185.5M | 166.7M | 113.9M | 57.0M | 54.2M |
Hongrun Construction 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 Hongrun Construction or Construction & Engineering 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 Hongrun Construction'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 Hongrun 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 | -0.29 | |
σ | Overall volatility | 2.88 | |
Ir | Information ratio | 0.09 |
Hongrun Construction Volatility Alert
Hongrun Construction Group currently demonstrates below-average downside deviation. It has Information Ratio of 0.09 and Jensen Alpha of 0.39. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Hongrun Construction'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 Hongrun Construction'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.Hongrun Construction Fundamentals Vs Peers
Comparing Hongrun Construction'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 Hongrun Construction's direct or indirect competition across all of the common fundamentals between Hongrun Construction and the related equities. This way, we can detect undervalued stocks with similar characteristics as Hongrun Construction or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Hongrun Construction's fundamental indicators could also be used in its relative valuation, which is a method of valuing Hongrun Construction by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Hongrun Construction to competition |
| Fundamentals | Hongrun Construction | Peer Average |
| Return On Equity | 0.0906 | -0.31 |
| Return On Asset | 0.0197 | -0.14 |
| Profit Margin | 0.05 % | (1.27) % |
| Operating Margin | 0.06 % | (5.51) % |
| Current Valuation | 5.03 B | 16.62 B |
| Shares Outstanding | 1.1 B | 571.82 M |
| Shares Owned By Insiders | 59.58 % | 10.09 % |
| Shares Owned By Institutions | 0.75 % | 39.21 % |
| Price To Book | 1.09 X | 9.51 X |
| Price To Sales | 0.78 X | 11.42 X |
| Revenue | 6.43 B | 9.43 B |
| Gross Profit | 1.36 B | 27.38 B |
| EBITDA | 587.34 M | 3.9 B |
| Net Income | 339.06 M | 570.98 M |
| Total Debt | 2.51 B | 5.32 B |
| Book Value Per Share | 4.07 X | 1.93 K |
| Cash Flow From Operations | 1.01 B | 971.22 M |
| Earnings Per Share | 0.30 X | 3.12 X |
| Target Price | 18.0 | |
| Number Of Employees | 1.82 K | 18.84 K |
| Beta | 0.2 | -0.15 |
| Market Capitalization | 4.81 B | 19.03 B |
| Total Asset | 15.6 B | 29.47 B |
| Retained Earnings | 2.69 B | 9.33 B |
| Working Capital | 2.17 B | 1.48 B |
| Annual Yield | 0.02 % | |
| Net Asset | 15.6 B | |
| Last Dividend Paid | 0.1 |
Hongrun Construction Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Hongrun . 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.
| Accumulation Distribution | 340945.0 | |||
| Daily Balance Of Power | (0.25) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 4.42 | |||
| Day Typical Price | 4.4 | |||
| Price Action Indicator | (0.08) | |||
| Period Momentum Indicator | (0.04) |
About Hongrun Construction Buy or Sell Advice
When is the right time to buy or sell Hongrun Construction Group? Buying financial instruments such as Hongrun 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.
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Other Information on Investing in Hongrun Stock
Hongrun Construction financial ratios help investors to determine whether Hongrun 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 Hongrun with respect to the benefits of owning Hongrun Construction security.