Hangzhou Advance Gearbox Group Co., Ltd. (601177) 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

Hangzhou Advance Gearbox Group Co., Ltd.

Why is Hangzhou Advance Gearbox Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.93%

The company has been able to generate a Return on Capital Employed (avg) of 1.93% 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 4.91% and Operating profit at 5.56% 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 9.37% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.91% and Operating profit at 5.56% over the last 5 years

Flat results in Sep 25

INTEREST COVERAGE RATIO(Q) Lowest at 300.1
OPERATING PROFIT(Q) Lowest at CNY 15.01 MM
OPERATING PROFIT MARGIN(Q) Lowest at 2.28 %

With ROE of 9.59%, it has a attractive valuation with a 2.72 Price to Book Value

Over the past year, while the stock has generated a return of -10.18%, its profits have risen by 23.9% ; the PEG ratio of the company is 1.2
At the current price, the company has a high dividend yield of 0.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hangzhou Advance Gearbox Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is Hangzhou Advance Gearbox Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hangzhou Advance Gearbox Group Co., Ltd.

-22.45%

2.49

47.22%

China Shanghai Composite

15.17%

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)

4.91%

EBIT Growth (5y)

5.56%

EBIT to Interest (avg)

1.50

Debt to EBITDA (avg)

6.48

Net Debt to Equity (avg)

0.31

Sales to Capital Employed (avg)

0.55

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

9.97%

Pledged Shares

Institutional Holding

ROCE (avg)

1.93%

ROE (avg)

9.37%

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

2.72

EV to EBIT

136.08

EV to EBITDA

50.99

EV to Capital Employed

2.34

EV to Sales

3.52

PEG Ratio

1.19

Dividend Yield

0.32%

ROCE (Latest)

1.72%

ROE (Latest)

9.59%

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

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 208.76 MM

DEBT-EQUITY RATIO (HY)

Lowest at 29.16 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.69 times

RAW MATERIAL COST(Y)

Fallen by -13.17% (YoY

NET PROFIT(Q)

Highest at CNY 79.78 MM

EPS(Q)

Highest at CNY 0.2

-4What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 300.1

OPERATING PROFIT(Q)

Lowest at CNY 15.01 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.28 %

Here's what is working for Hangzhou Advance Gearbox Group Co., Ltd.

Debt-Equity Ratio

Lowest at 29.16 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.69 times 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

Operating Cash Flow

Highest at CNY 208.76 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

Highest at CNY 79.78 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.2

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -13.17% (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 Hangzhou Advance Gearbox Group Co., Ltd.

Interest Coverage Ratio

Lowest at 300.1

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 15.01 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.28 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales