Why is Hangzhou Innover Technology Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 1.95%
- The company has been able to generate a Return on Capital Employed (avg) of 1.95% signifying low profitability per unit of total capital (equity and debt)
2
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 14.63% and Operating profit at 59.17% 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 3.83% signifying low profitability per unit of shareholders funds
3
The company has declared Negative results for the last 4 consecutive quarters
- OPERATING PROFIT(Q) Lowest at CNY -1.96 MM
- OPERATING PROFIT MARGIN(Q) Lowest at -1.72 %
- PRE-TAX PROFIT(Q) Fallen at -30.22%
4
With ROE of 3.53%, it has a fair valuation with a 0.86 Price to Book Value
- Over the past year, while the stock has generated a return of 44.26%, its profits have fallen by -32.7%
- At the current price, the company has a high dividend yield of 0.9
How much should you hold?
- Overall Portfolio exposure to Hangzhou Innover Technology Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hangzhou Innover Technology Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Hangzhou Innover Technology Co., Ltd.
34.33%
1.33
57.03%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
14.63%
EBIT Growth (5y)
59.17%
EBIT to Interest (avg)
11.13
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.23
Sales to Capital Employed (avg)
0.68
Tax Ratio
1.60%
Dividend Payout Ratio
24.93%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.95%
ROE (avg)
3.83%
Valuation Key Factors 
Factor
Value
P/E Ratio
24
Industry P/E
Price to Book Value
0.86
EV to EBIT
43.58
EV to EBITDA
13.77
EV to Capital Employed
0.81
EV to Sales
0.81
PEG Ratio
NA
Dividend Yield
0.91%
ROCE (Latest)
1.87%
ROE (Latest)
3.53%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -15.4% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 3.14%
-13What is not working for the Company
OPERATING PROFIT(Q)
Lowest at CNY -1.96 MM
OPERATING PROFIT MARGIN(Q)
Lowest at -1.72 %
PRE-TAX PROFIT(Q)
Fallen at -30.22%
NET PROFIT(Q)
Fallen at -32.89%
Here's what is working for Hangzhou Innover Technology Co., Ltd.
Inventory Turnover Ratio
Highest at 3.14%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -15.4% (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 Innover Technology Co., Ltd.
Operating Profit
Lowest at CNY -1.96 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at -1.72 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Fallen at -30.22%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Net Profit
Fallen at -32.89%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)






