Hainan Drinda New Energy Technology Co., Ltd. (002865) 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

Hainan Drinda New Energy Technology Co., Ltd.

Why is Hainan Drinda New Energy Technology Co., Ltd. ?

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 54.37% and Operating profit at -248.72% 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 18.44% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 54.37% and Operating profit at -248.72% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

NET PROFIT(9M) At CNY -530.85 MM has Grown at -356.54%
NET SALES(Q) At CNY 1,861.9 MM has Fallen at -24.81%
INVENTORY TURNOVER RATIO(HY) Lowest at 10.39%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -38.45%, its profits have fallen by -130.2%
At the current price, the company has a high dividend yield of 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -38.45% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hainan Drinda New Energy Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hainan Drinda New Energy Technology Co., Ltd.

-48.01%

-0.10

50.08%

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)

54.37%

EBIT Growth (5y)

-248.72%

EBIT to Interest (avg)

1.25

Debt to EBITDA (avg)

2.39

Net Debt to Equity (avg)

0.60

Sales to Capital Employed (avg)

1.59

Tax Ratio

17.25%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

9.13%

ROE (avg)

18.44%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.90

EV to EBIT

-15.11

EV to EBITDA

82.00

EV to Capital Employed

1.78

EV to Sales

1.37

PEG Ratio

Dividend Yield

ROCE (Latest)

-11.76%

ROE (Latest)

-14.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Bullish

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

6What is working for the Company

NET PROFIT(HY)

Higher at CNY -280.24 MM

RAW MATERIAL COST(Y)

Fallen by -2.68% (YoY

CASH AND EQV(HY)

Highest at CNY 9,419.98 MM

-24What is not working for the Company

NET PROFIT(9M)

At CNY -530.85 MM has Grown at -356.54%

NET SALES(Q)

At CNY 1,861.9 MM has Fallen at -24.81%

INVENTORY TURNOVER RATIO(HY)

Lowest at 10.39%

INTEREST(Q)

Highest at CNY 72.47 MM

Here's what is working for Hainan Drinda New Energy Technology Co., Ltd.

Net Profit

Higher at CNY -280.24 MM

than preceding 12 month period ended Mar 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Net Profit

At CNY -280.24 MM has Grown at 64.93%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 9,419.98 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -2.68% (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 Hainan Drinda New Energy Technology Co., Ltd.

Net Sales

At CNY 1,861.9 MM has Fallen at -24.81%

over average net sales of the previous four periods of CNY 2,476.12 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 72.47 MM has Grown at 61.18%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 72.47 MM

in the last five periods and Increased by 61.18% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 10.39%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio