HangZhou Radical Energy Saving Technology Co., Ltd. (300652) 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 Radical Energy Saving Technology Co., Ltd.

Why is HangZhou Radical Energy Saving Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 15.62% and Operating profit at 18.16% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(HY) At CNY 0.33 MM has Grown at 1,519.09%
OPERATING CASH FLOW(Y) Lowest at CNY 45.34 MM
DEBT-EQUITY RATIO (HY) Highest at -33.37 %

With ROE of 9.70%, it has a fair valuation with a 5.03 Price to Book Value

Over the past year, while the stock has generated a return of 125.25%, its profits have risen by 27.1%
At the current price, the company has a high dividend yield of 0.2

Market Beating Performance

The stock has generated a return of 125.25% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to HangZhou Radical Energy Saving 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 Radical Energy Saving Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

HangZhou Radical Energy Saving Technology Co., Ltd.

141.65%

3.63

75.92%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.62%

EBIT Growth (5y)

18.16%

EBIT to Interest (avg)

53.57

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

0.47

Tax Ratio

13.05%

Dividend Payout Ratio

9.85%

Pledged Shares

Institutional Holding

ROCE (avg)

12.90%

ROE (avg)

7.92%

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

5.03

EV to EBIT

49.36

EV to EBITDA

40.41

EV to Capital Employed

6.28

EV to Sales

7.73

PEG Ratio

Dividend Yield

0.16%

ROCE (Latest)

12.72%

ROE (Latest)

9.70%

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

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

7What is working for the Company

NET SALES(HY)

At CNY 408.04 MM has Grown at 21.04%

INVENTORY TURNOVER RATIO(HY)

Highest at 1.97%

PRE-TAX PROFIT(Q)

Highest at CNY 38.93 MM

NET PROFIT(Q)

Highest at CNY 33.36 MM

EPS(Q)

Highest at CNY 0.26

-14What is not working for the Company

INTEREST(HY)

At CNY 0.33 MM has Grown at 1,519.09%

OPERATING CASH FLOW(Y)

Lowest at CNY 45.34 MM

DEBT-EQUITY RATIO (HY)

Highest at -33.37 %

RAW MATERIAL COST(Y)

Grown by 9.31% (YoY

Here's what is working for HangZhou Radical Energy Saving Technology Co., Ltd.

Net Sales

At CNY 408.04 MM has Grown at 21.04%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 1.97% 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

Pre-Tax Profit

Highest at CNY 38.93 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 33.36 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.26

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for HangZhou Radical Energy Saving Technology Co., Ltd.

Interest

At CNY 0.33 MM has Grown at 1,519.09%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 45.34 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 -33.37 % 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

Raw Material Cost

Grown by 9.31% (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