Hangzhou Cable Co., Ltd. (603618) 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

Hangzhou Cable Co., Ltd.

Why is Hangzhou Cable 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 11.68% and Operating profit at 2.37% 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 4.64% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.68% and Operating profit at 2.37% over the last 5 years

The company has declared negative results for the last 2 consecutive quarters

INTEREST(HY) At CNY 93.97 MM has Grown at 5.82%
ROCE(HY) Lowest at 4.44%
OPERATING PROFIT MARGIN(Q) Lowest at 2.48 %

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 31.92%, its profits have fallen by -13.1%
At the current price, the company has a high dividend yield of 0.5

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 Electronics & Appliances)

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

Is Hangzhou Cable Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hangzhou Cable Co., Ltd.

31.92%

1.25

57.41%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.68%

EBIT Growth (5y)

2.37%

EBIT to Interest (avg)

1.88

Debt to EBITDA (avg)

10.50

Net Debt to Equity (avg)

1.64

Sales to Capital Employed (avg)

0.92

Tax Ratio

20.01%

Dividend Payout Ratio

30.09%

Pledged Shares

Institutional Holding

ROCE (avg)

4.20%

ROE (avg)

4.64%

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

2.88

EV to EBIT

56.58

EV to EBITDA

33.79

EV to Capital Employed

1.65

EV to Sales

1.48

PEG Ratio

Dividend Yield

0.49%

ROCE (Latest)

2.92%

ROE (Latest)

3.80%

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

OBV

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 SALES(HY)

At CNY 4,365.43 MM has Grown at 27.53%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.42%

DEBTORS TURNOVER RATIO(HY)

Highest at 2.09%

-12What is not working for the Company

INTEREST(HY)

At CNY 93.97 MM has Grown at 5.82%

ROCE(HY)

Lowest at 4.44%

OPERATING PROFIT MARGIN(Q)

Lowest at 2.48 %

RAW MATERIAL COST(Y)

Grown by 21.1% (YoY

NET SALES(Q)

At CNY 1,973.65 MM has Fallen at -10.43%

OPERATING PROFIT(Q)

Lowest at CNY 48.87 MM

PRE-TAX PROFIT(Q)

Lowest at CNY 28.66 MM

NET PROFIT(Q)

At CNY 21.28 MM has Fallen at -38.15%

Here's what is working for Hangzhou Cable Co., Ltd.

Inventory Turnover Ratio

Highest at 4.42%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 2.09%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Hangzhou Cable Co., Ltd.

Operating Profit Margin

Lowest at 2.48 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Interest

At CNY 93.97 MM has Grown at 5.82%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 1,973.65 MM has Fallen at -10.43%

over average net sales of the previous four periods of CNY 2,203.43 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 48.87 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY 28.66 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 28.66 MM has Fallen at -36.81%

over average net sales of the previous four periods of CNY 45.36 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 21.28 MM has Fallen at -38.15%

over average net sales of the previous four periods of CNY 34.4 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 21.1% (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