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

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 20.64% and Operating profit at -216.69% 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 20.64% and Operating profit at -216.69% over the last 5 years

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

NET PROFIT(HY) At CNY -53.66 MM has Grown at -359.99%
INTEREST(HY) At CNY 141.64 MM has Grown at 14.26%
OPERATING CASH FLOW(Y) Lowest at CNY 753.17 MM

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 47.26%, 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.

38.73%

1.22

51.35%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.64%

EBIT Growth (5y)

-216.69%

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

3.04

EV to EBIT

-62.46

EV to EBITDA

53.24

EV to Capital Employed

2.03

EV to Sales

8.91

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.25%

ROE (Latest)

-6.14%

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

Mildly Bullish

OBV

Mildly Bearish

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

9What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 2.29 times

NET SALES(Q)

Highest at CNY 973.74 MM

PRE-TAX PROFIT(Q)

At CNY -52.87 MM has Grown at 63.39%

NET PROFIT(Q)

At CNY -9.29 MM has Grown at 89.07%

EPS(Q)

Highest at CNY 0.03

-21What is not working for the Company

NET PROFIT(HY)

At CNY -53.66 MM has Grown at -359.99%

INTEREST(HY)

At CNY 141.64 MM has Grown at 14.26%

OPERATING CASH FLOW(Y)

Lowest at CNY 753.17 MM

ROCE(HY)

Lowest at -4.27%

DEBT-EQUITY RATIO (HY)

Highest at 99.74 %

RAW MATERIAL COST(Y)

Grown by 10.73% (YoY

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

Net Sales

Highest at CNY 973.74 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 973.74 MM has Grown at 18.06%

over average net sales of the previous four periods of CNY 824.81 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -52.87 MM has Grown at 63.39%

over average net sales of the previous four periods of CNY -144.43 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -9.29 MM has Grown at 89.07%

over average net sales of the previous four periods of CNY -85 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 2.29 times

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 Lion Electronics Co., Ltd.

Interest

At CNY 141.64 MM has Grown at 14.26%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 99.74 % 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 Cash Flow

Lowest at CNY 753.17 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Raw Material Cost

Grown by 10.73% (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