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

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 6.21% and Operating profit at 4.95% over the last 5 years

OPERATING CASH FLOW(Y) Lowest at CNY 100.17 MM
INTEREST COVERAGE RATIO(Q) Lowest at 1,306.97
INVENTORY TURNOVER RATIO(HY) Lowest at 1.68 times

With ROE of 5.41%, it has a very expensive valuation with a 10.80 Price to Book Value

Over the past year, while the stock has generated a return of 251.26%, its profits have risen by 7.8% ; the PEG ratio of the company is 25.8
At the current price, the company has a high dividend yield of 0.2

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.

275.89%

10.92

73.15%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.21%

EBIT Growth (5y)

4.95%

EBIT to Interest (avg)

16.30

Debt to EBITDA (avg)

0.70

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

0.67

Tax Ratio

13.67%

Dividend Payout Ratio

44.50%

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

200

Industry P/E

Price to Book Value

10.80

EV to EBIT

281.38

EV to EBITDA

205.00

EV to Capital Employed

11.00

EV to Sales

12.44

PEG Ratio

25.76

Dividend Yield

0.21%

ROCE (Latest)

3.91%

ROE (Latest)

5.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

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

9What is working for the Company

NET PROFIT(HY)

At CNY 78.66 MM has Grown at 79.01%

ROCE(HY)

Highest at 5.29%

RAW MATERIAL COST(Y)

Fallen by -13.17% (YoY

CASH AND EQV(HY)

Highest at CNY 1,950.61 MM

-19What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 100.17 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 1,306.97

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.68 times

INTEREST(Q)

Highest at CNY 1.09 MM

OPERATING PROFIT(Q)

Lowest at CNY 14.25 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.41 %

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

Net Profit

At CNY 78.66 MM has Grown at 79.01%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 1,950.61 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -13.17% (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.

Interest

At CNY 1.09 MM has Grown at 702.13%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,306.97

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 100.17 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 1.09 MM

in the last five periods and Increased by 702.13% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 14.25 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.41 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 1.68 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio