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)

Flat results in Sep 25

DEBT-EQUITY RATIO (HY) Highest at 30.29 %
INTEREST COVERAGE RATIO(Q) Lowest at 1,851.39
OPERATING PROFIT(Q) Lowest at CNY 119.68 MM

With ROE of 7.14%, it has a fair valuation with a 1.55 Price to Book Value

Over the past year, while the stock has generated a return of -15.53%, 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

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.17% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -15.53% returns

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.

-15.53%

1.13

42.85%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.17%

EBIT Growth (5y)

35.39%

EBIT to Interest (avg)

11.98

Debt to EBITDA (avg)

1.34

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

1.13

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

1.55

EV to EBIT

25.28

EV to EBITDA

16.03

EV to Capital Employed

1.45

EV to Sales

0.91

PEG Ratio

0.67

Dividend Yield

0.82%

ROCE (Latest)

5.75%

ROE (Latest)

7.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

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

4What is working for the Company

ROCE(HY)

Highest at 7.91%

RAW MATERIAL COST(Y)

Fallen by -3.77% (YoY

PRE-TAX PROFIT(Q)

At CNY 202.75 MM has Grown at 61.35%

-6What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 30.29 %

INTEREST COVERAGE RATIO(Q)

Lowest at 1,851.39

OPERATING PROFIT(Q)

Lowest at CNY 119.68 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.39 %

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

Pre-Tax Profit

At CNY 202.75 MM has Grown at 61.35%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -3.77% (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 Coverage Ratio

Lowest at 1,851.39

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 30.29 % 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

Operating Profit

Lowest at CNY 119.68 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.39 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Non Operating Income

Highest at CNY 0.44 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income