Aowei Holding Ltd. (1370) 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

GDH Guangnan (Holdings) Ltd.

Impro Precision Industries Ltd.

Xingda International Holdings Ltd.

China Oriental Group Co. Ltd.

Newton Resources Ltd.

Maanshan Iron & Steel Co., Ltd.

Angang Steel Co., Ltd.

Aowei Holding Ltd.

Da Ming International Holdings Ltd.

Huajin International Holdings Ltd.

IRC Ltd. (Hong Kong)

Why is Aowei Holding Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -1.09% and Operating profit at -253.59% over the last 5 years
The company is Net-Debt Free

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 -28.21%, its profits have risen by 4.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -28.21% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods

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 Ferrous Metals)

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

Is Aowei Holding Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Aowei Holding Ltd.

-28.21%

-0.28

162.40%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.09%

EBIT Growth (5y)

-253.59%

EBIT to Interest (avg)

1.66

Debt to EBITDA (avg)

6.15

Net Debt to Equity (avg)

1.16

Sales to Capital Employed (avg)

0.44

Tax Ratio

2.36%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.78%

ROE (avg)

3.94%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.52

EV to EBIT

-10.20

EV to EBITDA

45.96

EV to Capital Employed

0.77

EV to Sales

1.66

PEG Ratio

Dividend Yield

ROCE (Latest)

-7.55%

ROE (Latest)

-22.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

No Trend

OBV

No Trend

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

15What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 5.78 times

RAW MATERIAL COST(Y)

Fallen by -502.61% (YoY

CASH AND EQV(HY)

Highest at HKD 257.97 MM

NET SALES(Q)

Highest at HKD 393.72 MM

OPERATING PROFIT(Q)

Highest at HKD 95.75 MM

OPERATING PROFIT MARGIN(Q)

Highest at 24.32 %

PRE-TAX PROFIT(Q)

Highest at HKD 9.58 MM

NET PROFIT(Q)

Highest at HKD 11.37 MM

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 158.91 MM

DEBT-EQUITY RATIO (HY)

Highest at 140.15 %

Here's what is working for Aowei Holding Ltd.

Pre-Tax Profit

At HKD 9.58 MM has Grown at 113.16%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (HKD MM)

Net Profit

At HKD 11.37 MM has Grown at 116.95%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (HKD MM)

Debtors Turnover Ratio

Highest at 5.78 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

Highest at HKD 393.72 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Operating Profit

Highest at HKD 95.75 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (HKD MM)

Operating Profit Margin

Highest at 24.32 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at HKD 9.58 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Net Profit

Highest at HKD 11.37 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

Cash and Eqv

Highest at HKD 257.97 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -502.61% (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 Aowei Holding Ltd.

Operating Cash Flow

Lowest at HKD 158.91 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Debt-Equity Ratio

Highest at 140.15 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio