Hangzhou Chang Chuan Technology Co., Ltd. (300604) 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 Chang Chuan Technology Co., Ltd.

Why is Hangzhou Chang Chuan Technology Co., Ltd. ?

With a growth in Net Profit of 217.6%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 8 consecutive quarters
NET PROFIT(Q) At CNY 352.54 MM has Grown at 217.6%
ROCE(HY) Highest at 36.76%
INVENTORY TURNOVER RATIO(HY) Highest at 0.83 times

With ROE of 31.61%, it has a very expensive valuation with a 17.77 Price to Book Value

Over the past year, while the stock has generated a return of 605.00%, its profits have risen by 169.9% ; the PEG ratio of the company is 0.3

Market Beating performance in long term as well as near term

Along with generating 605.00% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hangzhou Chang Chuan Technology 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 Hangzhou Chang Chuan Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hangzhou Chang Chuan Technology Co., Ltd.

605.0%

13.04

70.83%

China Shanghai Composite

19.22%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

42.87%

EBIT Growth (5y)

76.88%

EBIT to Interest (avg)

19.01

Debt to EBITDA (avg)

7.67

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

0.59

Tax Ratio

2.23%

Dividend Payout Ratio

4.72%

Pledged Shares

Institutional Holding

ROCE (avg)

6.75%

ROE (avg)

12.34%

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

17.77

EV to EBIT

66.02

EV to EBITDA

61.40

EV to Capital Employed

13.02

EV to Sales

15.80

PEG Ratio

0.33

Dividend Yield

0.14%

ROCE (Latest)

19.72%

ROE (Latest)

31.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

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

31What is working for the Company

NET PROFIT(Q)

At CNY 352.54 MM has Grown at 217.6%

ROCE(HY)

Highest at 36.76%

INVENTORY TURNOVER RATIO(HY)

Highest at 0.83 times

NET SALES(Q)

At CNY 1,378.47 MM has Grown at 69.09%

PRE-TAX PROFIT(Q)

At CNY 351.06 MM has Grown at 202.09%

RAW MATERIAL COST(Y)

Fallen by -13.27% (YoY

CASH AND EQV(HY)

Highest at CNY 3,707.47 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.02 times

-12What is not working for the Company

INTEREST(HY)

At CNY 28.49 MM has Grown at 101.85%

DEBT-EQUITY RATIO (HY)

Highest at 39.84 %

Here's what is working for Hangzhou Chang Chuan Technology Co., Ltd.

Net Profit

At CNY 352.54 MM has Grown at 217.6%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 1,378.47 MM has Grown at 69.09%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 351.06 MM has Grown at 202.09%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Highest at 0.83 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

Cash and Eqv

Highest at CNY 3,707.47 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 3.02 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 -13.27% (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 Chang Chuan Technology Co., Ltd.

Interest

At CNY 28.49 MM has Grown at 101.85%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 39.84 %

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