Haier Smart Home 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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hisense Home Appliances Group Co., Ltd.

Town Ray Holdings Ltd.

Haier Smart Home Co., Ltd.

Raymond Industrial Ltd.

Cowell e Holdings Inc.

TCL Electronics Holdings Ltd.

JS Global Lifestyle Co. Ltd.

Nimble Holdings Co. Ltd.

Central Wealth Group Holdings Ltd.

Allan International Holdings Ltd.

Fujikon Industrial Holdings Ltd.

Why is Haier Smart Home Co., Ltd. ?

High Management Efficiency with a high ROE of 16.57%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 11.28

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 16.57%

Positive results in Dec 24

OPERATING CASH FLOW(Y) Highest at HKD 54,393.89 MM
INVENTORY TURNOVER RATIO(HY) Highest at 5.05%
NET SALES(Q) Highest at HKD 163,101.66 MM

With ROE of 18.31%, it has a Fair valuation with a 0.60 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -5.79%, its profits have risen by 16.2% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

Even though the market (Hang Seng Hong Kong) has generated returns of 27.36% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -5.79% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Haier Smart Home 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 Haier Smart Home Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Haier Smart Home Co., Ltd.

-5.79%

-0.31

35.87%

Hang Seng Hong Kong

27.36%

1.06

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.42%

EBIT Growth (5y)

28.76%

EBIT to Interest (avg)

11.28

Debt to EBITDA (avg)

0.14

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

1.77

Tax Ratio

15.62%

Dividend Payout Ratio

48.54%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

16.32%

ROE (avg)

16.57%

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

0.60

EV to EBIT

3.01

EV to EBITDA

2.16

EV to Capital Employed

0.58

EV to Sales

0.22

PEG Ratio

0.20

Dividend Yield

ROCE (Latest)

19.41%

ROE (Latest)

18.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Sideways

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bullish

OBV

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

Not enough Data to analyse Financial Trend

Here's what is working for Haier Smart Home Co., Ltd.

Operating Cash Flow

Highest at HKD 54,393.89 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 (HKD MM)

Inventory Turnover Ratio

Highest at 5.05% 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

Net Sales

Highest at HKD 163,101.66 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Depreciation

Highest at HKD 4,750.4 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Depreciation

At HKD 4,750.4 MM has Grown at 21.27%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for Haier Smart Home Co., Ltd.

Interest Coverage Ratio

Lowest at 878.29

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at HKD 1,614.2 MM

in the last five periods and Increased by 22.4% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Debt-Equity Ratio

Highest at 1.82 %

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

Debtors Turnover Ratio

Lowest at 8.31%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 22.36% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales