Hangzhou Lion Electronics Co., Ltd. (605358) 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 Lion Electronics Co., Ltd.

Why is Hangzhou Lion Electronics 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 21.34% and Operating profit at -218.46% 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 5.82% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 21.34% and Operating profit at -218.46% over the last 5 years

The company has declared Negative results for the last 10 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 566.71 MM
INTEREST(HY) At CNY 135.14 MM has Grown at 13.7%
ROCE(HY) Lowest at -3.75%

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 9.42%, its profits have fallen by -81.7%
At the current price, the company has a high dividend yield of 0

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 Other Electrical Equipment)

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

Is Hangzhou Lion Electronics Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hangzhou Lion Electronics Co., Ltd.

9.42%

0.68

44.40%

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)

21.34%

EBIT Growth (5y)

-218.46%

EBIT to Interest (avg)

2.36

Debt to EBITDA (avg)

9.06

Net Debt to Equity (avg)

0.97

Sales to Capital Employed (avg)

0.18

Tax Ratio

29.80%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.66%

ROE (avg)

5.82%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.79

EV to EBIT

-58.60

EV to EBITDA

49.96

EV to Capital Employed

1.91

EV to Sales

8.36

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.25%

ROE (Latest)

-6.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

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

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -108.04% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.3%

DEBTORS TURNOVER RATIO(HY)

Highest at 2.16%

NET SALES(Q)

Highest at CNY 811.72 MM

-24What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 566.71 MM

INTEREST(HY)

At CNY 135.14 MM has Grown at 13.7%

ROCE(HY)

Lowest at -3.75%

DEBT-EQUITY RATIO (HY)

Highest at 96.56 %

OPERATING PROFIT(Q)

Lowest at CNY -105.59 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -13.01 %

NET PROFIT(Q)

At CNY -79.26 MM has Fallen at -29.31%

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

Net Sales

Highest at CNY 811.72 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 2.3%

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 2.16%

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 -108.04% (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 Lion Electronics Co., Ltd.

Interest

At CNY 135.14 MM has Grown at 13.7%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 566.71 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 96.56 % and Grown

In each half year 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

Operating Profit

Lowest at CNY -105.59 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -13.01 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY -79.26 MM has Fallen at -29.31%

over average net sales of the previous four periods of CNY -61.3 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)