Dalian Huarui Heavy Industry Group Co., Ltd. (002204) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Dalian Huarui Heavy Industry Group Co., Ltd.

Why is Dalian Huarui Heavy Industry Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.91%

The company has been able to generate a Return on Capital Employed (avg) of 2.91% signifying low profitability per unit of total capital (equity and debt)

Flat results in Mar 25

INTEREST(HY) At CNY 19.28 MM has Grown at 16.36%
DEBT-EQUITY RATIO (HY) Highest at 28.51 %

With ROE of 7.14%, it has a expensive valuation with a 1.52 Price to Book Value

Over the past year, while the stock has generated a return of 30.59%, its profits have risen by 32.6% ; the PEG ratio of the company is 0.7
At the current price, the company has a high dividend yield of 0.8

Market Beating Performance

The stock has generated a return of 30.59% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Dalian Huarui Heavy Industry Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Dalian Huarui Heavy Industry Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Dalian Huarui Heavy Industry Group Co., Ltd.

29.68%

1.13

44.50%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.76%

EBIT Growth (5y)

61.52%

EBIT to Interest (avg)

11.98

Debt to EBITDA (avg)

1.34

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

1.11

Tax Ratio

14.19%

Dividend Payout Ratio

19.30%

Pledged Shares

Institutional Holding

ROCE (avg)

2.91%

ROE (avg)

4.14%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.52

EV to EBIT

24.88

EV to EBITDA

15.78

EV to Capital Employed

1.43

EV to Sales

0.89

PEG Ratio

0.65

Dividend Yield

0.84%

ROCE (Latest)

5.75%

ROE (Latest)

7.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

19What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 209.09 MM

NET SALES(HY)

At CNY 7,586.74 MM has Grown at 28.03%

ROCE(HY)

Highest at 7.33%

INVENTORY TURNOVER RATIO(HY)

Highest at 2.07%

RAW MATERIAL COST(Y)

Fallen by -5.74% (YoY

CASH AND EQV(HY)

Highest at CNY 6,393.86 MM

PRE-TAX PROFIT(Q)

Highest at CNY 209.2 MM

NET PROFIT(Q)

Highest at CNY 181.2 MM

EPS(Q)

Highest at CNY 0.09

-7What is not working for the Company

INTEREST(HY)

At CNY 19.28 MM has Grown at 16.36%

DEBT-EQUITY RATIO (HY)

Highest at 28.51 %

Here's what is working for Dalian Huarui Heavy Industry Group Co., Ltd.

Net Sales

At CNY 7,586.74 MM has Grown at 28.03%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 2.07% and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Cash Flow

Highest at CNY 209.09 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 209.2 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 181.2 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.09

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 6,393.86 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -5.74% (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 Dalian Huarui Heavy Industry Group Co., Ltd.

Interest

At CNY 19.28 MM has Grown at 16.36%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 28.51 % and Grown

In each half year 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