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

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)

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at CNY 1,681.47 MM
CASH AND EQV(HY) Highest at CNY 7,387.8 MM
INVENTORY TURNOVER RATIO(HY) Highest at 2.23 times

With ROE of 7.63%, it has a fair valuation with a 1.35 Price to Book Value

Over the past year, while the stock has generated a return of -1.94%, its profits have risen by 14.4% ; the PEG ratio of the company is 1.2
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -1.94% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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, Medium Return

Absolute

Risk Adjusted

Volatility

Dalian Huarui Heavy Industry Group Co., Ltd.

-4.9%

0.71

35.67%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.03%

EBIT Growth (5y)

30.63%

EBIT to Interest (avg)

11.98

Debt to EBITDA (avg)

1.34

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

1.14

Tax Ratio

14.19%

Dividend Payout Ratio

31.15%

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

1.35

EV to EBIT

20.51

EV to EBITDA

14.74

EV to Capital Employed

1.30

EV to Sales

0.76

PEG Ratio

1.23

Dividend Yield

ROCE (Latest)

6.35%

ROE (Latest)

7.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,681.47 MM

CASH AND EQV(HY)

Highest at CNY 7,387.8 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.23 times

PRE-TAX PROFIT(Q)

Highest at CNY 247.77 MM

NET PROFIT(Q)

Highest at CNY 208.02 MM

EPS(Q)

Highest at CNY 0.11

-2What is not working for the Company

INTEREST(Q)

At CNY 8.17 MM has Grown at 20.73%

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

Operating Cash Flow

Highest at CNY 1,681.47 MM and Grown

In each year 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 247.77 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 208.02 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.11

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 7,387.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.23 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Dalian Huarui Heavy Industry Group Co., Ltd.

Interest

At CNY 8.17 MM has Grown at 20.73%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)