Hangzhou Zhongheng Electric Co., Ltd. (002364) 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 Zhongheng Electric Co., Ltd.

Why is Hangzhou Zhongheng Electric Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.94%

The company has been able to generate a Return on Capital Employed (avg) of 1.94% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 11.52% and Operating profit at 14.58% over the last 5 years

With ROE of 4.08%, it has a very expensive valuation with a 6.52 Price to Book Value

Over the past year, while the stock has generated a return of 238.72%, its profits have risen by 1.3% ; the PEG ratio of the company is 127.5
At the current price, the company has a high dividend yield of 0.4

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 Electronics & Appliances)

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

Is Hangzhou Zhongheng Electric Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hangzhou Zhongheng Electric Co., Ltd.

214.15%

4.55

76.20%

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)

11.52%

EBIT Growth (5y)

14.58%

EBIT to Interest (avg)

16.30

Debt to EBITDA (avg)

0.70

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

0.64

Tax Ratio

13.67%

Dividend Payout Ratio

50.81%

Pledged Shares

Institutional Holding

ROCE (avg)

1.94%

ROE (avg)

3.23%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

160

Industry P/E

Price to Book Value

6.52

EV to EBIT

175.12

EV to EBITDA

110.56

EV to Capital Employed

7.66

EV to Sales

7.39

PEG Ratio

127.47

Dividend Yield

0.36%

ROCE (Latest)

4.38%

ROE (Latest)

4.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

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

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 430.68 MM

NET SALES(HY)

At CNY 1,159.21 MM has Grown at 26.41%

ROCE(HY)

Highest at 4.99%

PRE-TAX PROFIT(Q)

At CNY 19.21 MM has Grown at 176.15%

RAW MATERIAL COST(Y)

Fallen by -33.16% (YoY

CASH AND EQV(HY)

Highest at CNY 1,632.48 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.18%

DEBTORS TURNOVER RATIO(HY)

Highest at 1.99%

NET PROFIT(Q)

At CNY 20.29 MM has Grown at 84.32%

-2What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY 12.04 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.12 %

Here's what is working for Hangzhou Zhongheng Electric Co., Ltd.

Pre-Tax Profit

At CNY 19.21 MM has Grown at 176.15%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 1,159.21 MM has Grown at 26.41%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 430.68 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

At CNY 20.29 MM has Grown at 84.32%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 1,632.48 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.18%

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 1.99%

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 -33.16% (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 Zhongheng Electric Co., Ltd.

Operating Profit

Lowest at CNY 12.04 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.12 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales