Forehope Electronic (Ningbo) Co., Ltd. () 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

Forehope Electronic (Ningbo) Co., Ltd.

Why is Forehope Electronic (Ningbo) Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.91%

The company has been able to generate a Return on Capital Employed (avg) of 0.91% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 42.10% and Operating profit at 55.65% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 1.71% signifying low profitability per unit of shareholders funds

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Forehope Electronic (Ningbo) Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Forehope Electronic (Ningbo) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Forehope Electronic (Ningbo) Co., Ltd.

24.17%

2.42

55.62%

China Shanghai Composite

16.67%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

42.10%

EBIT Growth (5y)

55.65%

EBIT to Interest (avg)

0.15

Debt to EBITDA (avg)

5.33

Net Debt to Equity (avg)

1.55

Sales to Capital Employed (avg)

0.40

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.91%

ROE (avg)

1.71%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

290

Industry P/E

Price to Book Value

5.95

EV to EBIT

637.65

EV to EBITDA

19.70

EV to Capital Employed

2.81

EV to Sales

4.83

PEG Ratio

1.36

Dividend Yield

ROCE (Latest)

0.44%

ROE (Latest)

2.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

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

12What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -22.77% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.39 times

NET SALES(Q)

Highest at CNY 1,159.67 MM

NET PROFIT(Q)

Highest at CNY 32.81 MM

EPS(Q)

Highest at CNY 0.08

-19What is not working for the Company

NET PROFIT(HY)

At CNY 38.52 MM has Grown at -50.52%

DEBT-EQUITY RATIO (HY)

Highest at 243.17 %

INTEREST COVERAGE RATIO(Q)

Lowest at 60.29

PRE-TAX PROFIT(Q)

At CNY 17.22 MM has Fallen at -39.87%

INTEREST(Q)

Highest at CNY 67.42 MM

OPERATING PROFIT(Q)

Lowest at CNY 40.65 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.51 %

Here's what is working for Forehope Electronic (Ningbo) Co., Ltd.

Net Sales

Highest at CNY 1,159.67 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 1,159.67 MM has Grown at 25.76%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

Highest at CNY 32.81 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 5.39 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -22.77% (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 Forehope Electronic (Ningbo) Co., Ltd.

Interest

At CNY 67.42 MM has Grown at 13.54%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 60.29

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 17.22 MM has Fallen at -39.87%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 243.17 % 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

Interest

Highest at CNY 67.42 MM

in the last five periods and Increased by 13.54% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 40.65 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.51 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales