Huatian Technology:Annual Report Financial Analysis

11 ratings

Huatian Technology [002185:CH] was established on November 12, 2003. The company's main business is integrated circuit packaging, testing, import and export, and foreign investment.

Balance sheet analysis

From the perspective of the balance sheet, companies are obviously high in interest-bearing liabilities and are increasing year by year, indicating that companies have large capital needs and the risk of insolvency in 2020. The proportion of enterprise production assets to total assets is slightly higher, and the proportion of total profits to production assets is significantly lower than twice the cost of social capital. Enterprises are clearly asset-heavy. Asset-heavy enterprises have a heavy burden in the process of expansion and slow growth. If it is a non-macro-up cycle and a period of rapid growth of the industry, the company's disadvantages will be obvious.

Profit statement analysis

The turnover rate of the company's total assets has been declining year by year, indicating that the sales capacity of the company has not grown with the growth of the company, but has declined. The corporate sales expense ratio performed well, but it performed poorly in the entire industry. The increase year by year indicates that the intensity of competition in the industry is not strong, but the competitiveness of the enterprise has declined year by year, and the corporate management expense rate and operating expense rate have decreased year by year. The operating costs of export enterprises have increased slightly year by year.

Cash flow statement analysis

The net operating cash flow of the enterprise is positive, the net investment cash flow is negative, and the net financing cash flow is positive. The state of the enterprise is a slow bull type enterprise. This type of company is prone to excessive expansion of net investment cash flow outflows greater than net operating cash flow inflows. At present, it is obvious that companies are in such a situation, which is an unreasonable state of development. In the domestic high-growth industry This is the case for some state-owned enterprises due to stable orders and strong anti-risk capabilities. However, Huatian Technology is a private enterprise, and it is obvious that this kind of operating state has a higher risk. At the same time, it is worth noting that the cash received from borrowing for sub-projects is decreasing year by year. If the company is in a stable state of operation, it is a good thing to reduce borrowing year by year, but the company’s demand for funds is obviously rising, but the borrowed funds are decreasing. There is naturally reason to suspect that the company’s ability to increase borrowing decline.

The total market value of the company is moderate, and the industry hotspots are highly concerned. Prices and values are prone to positive deviations and are currently in a positive deviation. The company is clearly asset-heavy and has acceptable cash collection capabilities. Although the growth of the sub-industry of the company is not eye-catching But it's not bad, but there are almost no obvious advantages other than that. In this regard, although companies have the possibility of speculative fever due to hot spots and industry growth, they do not have long-term focus value on the whole.

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Integrated CircuitsSemiconductors & Semiconductor Equipment