Why is Hangzhou Zhongheng Electric Co., Ltd. ?
1
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)
2
Poor long term growth as Net Sales has grown by an annual rate of 10.21% and Operating profit at 4.33% over the last 5 years
3
With ROE of 4.08%, it has a very expensive valuation with a 6.62 Price to Book Value
- Over the past year, while the stock has generated a return of 107.06%, its profits have risen by 1.3% ; the PEG ratio of the company is 129.4
- At the current price, the company has a high dividend yield of 0.4
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.
94.36%
6.38
68.26%
China Shanghai Composite
15.17%
1.02
14.86%
Quality key factors
Factor
Value
Sales Growth (5y)
10.21%
EBIT Growth (5y)
4.33%
EBIT to Interest (avg)
16.30
Debt to EBITDA (avg)
0.70
Net Debt to Equity (avg)
-0.08
Sales to Capital Employed (avg)
0.66
Tax Ratio
13.67%
Dividend Payout Ratio
50.81%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.94%
ROE (avg)
3.23%
Valuation Key Factors 
Factor
Value
P/E Ratio
162
Industry P/E
Price to Book Value
6.62
EV to EBIT
177.82
EV to EBITDA
112.26
EV to Capital Employed
7.78
EV to Sales
7.50
PEG Ratio
129.38
Dividend Yield
0.36%
ROCE (Latest)
4.38%
ROE (Latest)
4.08%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Bullish
Technical Movement
8What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 2.22 times
CASH AND EQV(HY)
Highest at CNY 1,482.03 MM
NET SALES(Q)
At CNY 527.05 MM has Grown at 32.05%
-11What is not working for the Company
INTEREST(HY)
At CNY 0.94 MM has Grown at 60.9%
NET PROFIT(HY)
At CNY 52.28 MM has Grown at -30.27%
OPERATING PROFIT MARGIN(Q)
Lowest at 3.16 %
RAW MATERIAL COST(Y)
Grown by 12.45% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 3.46 %
OPERATING PROFIT(Q)
Lowest at CNY 16.65 MM
Here's what is working for Hangzhou Zhongheng Electric Co., Ltd.
Debtors Turnover Ratio
Highest at 2.22 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Net Sales
At CNY 527.05 MM has Grown at 32.05%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Cash and Eqv
Highest at CNY 1,482.03 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Hangzhou Zhongheng Electric Co., Ltd.
Interest
At CNY 0.94 MM has Grown at 60.9%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Profit Margin
Lowest at 3.16 % and Fallen
In each period in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Net Profit
At CNY 52.28 MM has Grown at -30.27%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
Operating Profit
Lowest at CNY 16.65 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Debt-Equity Ratio
Highest at 3.46 %
in the last five Semi-Annual periodsMOJO 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 12.45% (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






