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.

191.41%

1.22

51.35%

China Shanghai Composite

21.43%

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)

17.91%

EBIT Growth (5y)

-186.88%

EBIT to Interest (avg)

2.36

Debt to EBITDA (avg)

9.06

Net Debt to Equity (avg)

0.97

Sales to Capital Employed (avg)

0.19

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

6.03

EV to EBIT

-338.31

EV to EBITDA

72.23

EV to Capital Employed

3.48

EV to Sales

13.48

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.03%

ROE (Latest)

-1.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly 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

22What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 2.44 times

RAW MATERIAL COST(Y)

Fallen by -45.89% (YoY

NET SALES(Q)

Highest at CNY 999.38 MM

PRE-TAX PROFIT(Q)

Highest at CNY -7.38 MM

NET PROFIT(Q)

Highest at CNY 13.34 MM

-8What is not working for the Company

INTEREST(HY)

At CNY 144.26 MM has Grown at 6.75%

DEBT-EQUITY RATIO (HY)

Highest at 102.45 %

OPERATING PROFIT(Q)

Lowest at CNY -19 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1.9 %

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

Net Profit

At CNY 13.34 MM has Grown at 131.54%

over average net sales of the previous four periods of CNY -42.28 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 2.44 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

Net Sales

Highest at CNY 999.38 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY -7.38 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY -7.38 MM has Grown at 90.71%

over average net sales of the previous four periods of CNY -79.51 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 13.34 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -45.89% (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 144.26 MM has Grown at 6.75%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 102.45 % 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 -19 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -1.9 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales