Harbin Jiuzhou Group Co., Ltd. (300040) 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

Harbin Jiuzhou Group Co., Ltd.

Why is Harbin Jiuzhou Group Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 3.70%

Poor long term growth as Net Sales has grown by an annual rate of 0.47% and Operating profit at -0.84% over the last 5 years
The company is Net-Debt Free

With a growth in Net Profit of 12.88%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
RAW MATERIAL COST(Y) Fallen by -31.11% (YoY)
PRE-TAX PROFIT(Q) Highest at CNY 14.81 MM
NET PROFIT(Q) Highest at CNY 25.68 MM

With ROE of 1.96%, it has a expensive valuation with a 1.08 Price to Book Value

Over the past year, while the stock has generated a return of -9.38%, its profits have risen by 110% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 1.2

Below par performance in long term as well as near term

Along with generating -9.38% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Harbin Jiuzhou Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Harbin Jiuzhou Group Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Harbin Jiuzhou Group Co., Ltd.

-15.64%

-0.28

47.42%

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)

0.47%

EBIT Growth (5y)

-0.84%

EBIT to Interest (avg)

0.73

Debt to EBITDA (avg)

5.32

Net Debt to Equity (avg)

1.15

Sales to Capital Employed (avg)

0.26

Tax Ratio

9.22%

Dividend Payout Ratio

31.41%

Pledged Shares

Institutional Holding

ROCE (avg)

3.70%

ROE (avg)

4.03%

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

1.08

EV to EBIT

32.17

EV to EBITDA

17.91

EV to Capital Employed

1.04

EV to Sales

3.27

PEG Ratio

0.50

Dividend Yield

1.24%

ROCE (Latest)

3.24%

ROE (Latest)

1.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

13What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -31.11% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 14.81 MM

NET PROFIT(Q)

Highest at CNY 25.68 MM

EPS(Q)

Highest at CNY 0.04

-4What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 157.31

OPERATING PROFIT(Q)

Lowest at CNY 48.81 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 14.26 %

Here's what is working for Harbin Jiuzhou Group Co., Ltd.

Pre-Tax Profit

Highest at CNY 14.81 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 25.68 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -31.11% (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 Harbin Jiuzhou Group Co., Ltd.

Interest Coverage Ratio

Lowest at 157.31

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 48.81 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 14.26 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales