Hangzhou Hikvision Digital Technology Co., Ltd. (002415) 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 Hikvision Digital Technology Co., Ltd.

Why is Hangzhou Hikvision Digital Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 7.83% and Operating profit at 1.63% over the last 5 years

Flat results in Dec 25

DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
RAW MATERIAL COST(Y) Grown by 102.46% (YoY)
CASH AND EQV(HY) Lowest at CNY 36,657.03 MM

With ROE of 17.59%, it has a fair valuation with a 3.62 Price to Book Value

Over the past year, while the stock has generated a return of -1.47%, its profits have fallen by -8.1%
At the current price, the company has a high dividend yield of 2.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.47% 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 hold?

Overall Portfolio exposure to Hangzhou Hikvision Digital Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is Hangzhou Hikvision Digital Technology Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hangzhou Hikvision Digital Technology Co., Ltd.

-2.03%

-0.32

22.16%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.83%

EBIT Growth (5y)

1.63%

EBIT to Interest (avg)

45.26

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

1.02

Tax Ratio

8.85%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

27.86%

ROE (avg)

21.38%

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

3.62

EV to EBIT

22.52

EV to EBITDA

19.13

EV to Capital Employed

4.68

EV to Sales

2.81

PEG Ratio

Dividend Yield

2.29%

ROCE (Latest)

20.80%

ROE (Latest)

17.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

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

6What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

OPERATING PROFIT(Q)

Highest at CNY 5,360.28 MM

OPERATING PROFIT MARGIN(Q)

Highest at 20.03 %

PRE-TAX PROFIT(Q)

Highest at CNY 5,369.21 MM

NET PROFIT(Q)

Highest at CNY 3,934.5 MM

-8What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 102.46% (YoY

CASH AND EQV(HY)

Lowest at CNY 36,657.03 MM

DEBT-EQUITY RATIO (HY)

Highest at 0 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

DIVIDEND PER SHARE(HY)

Lowest at CNY 0

EPS(Q)

Lowest at CNY 0

Here's what is working for Hangzhou Hikvision Digital Technology Co., Ltd.

Operating Profit

Highest at CNY 5,360.28 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 20.03 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 5,369.21 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 3,934.5 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Here's what is not working for Hangzhou Hikvision Digital Technology Co., Ltd.

EPS

Lowest at CNY 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 36,657.03 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 0 %

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

Inventory Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at CNY 0

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (CNY)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 102.46% (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