Henan Senyuan Electric Co., Ltd. (002358) 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

Henan Senyuan Electric Co., Ltd.

Why is Henan Senyuan Electric Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.24%

The company has been able to generate a Return on Capital Employed (avg) of 2.24% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 10.82% and Operating profit at 70.57% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 1.48% signifying low profitability per unit of shareholders funds

Positive results in Sep 25

RAW MATERIAL COST(Y) Fallen by -7.08% (YoY)
PRE-TAX PROFIT(Q) Highest at CNY 98.06 MM
NET PROFIT(Q) Highest at CNY 96.48 MM

With ROE of 3.06%, it has a fair valuation with a 1.37 Price to Book Value

Over the past year, while the stock has generated a return of 34.08%, its profits have risen by 12.4% ; the PEG ratio of the company is 3.6
At the current price, the company has a high dividend yield of 0.4

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Henan Senyuan Electric 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 Henan Senyuan Electric Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Henan Senyuan Electric Co., Ltd.

25.17%

2.92

42.43%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.82%

EBIT Growth (5y)

70.57%

EBIT to Interest (avg)

-1.13

Debt to EBITDA (avg)

5.15

Net Debt to Equity (avg)

0.61

Sales to Capital Employed (avg)

0.51

Tax Ratio

15.02%

Dividend Payout Ratio

20.96%

Pledged Shares

Institutional Holding

ROCE (avg)

2.24%

ROE (avg)

1.48%

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

1.37

EV to EBIT

30.13

EV to EBITDA

16.09

EV to Capital Employed

1.22

EV to Sales

2.30

PEG Ratio

3.60

Dividend Yield

0.42%

ROCE (Latest)

4.06%

ROE (Latest)

3.06%

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

Mildly Bullish

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 -7.08% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 98.06 MM

NET PROFIT(Q)

Highest at CNY 96.48 MM

EPS(Q)

Highest at CNY 0.1

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -23.5 MM

DEBT-EQUITY RATIO (HY)

Highest at 67.67 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.94 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.8 times

Here's what is working for Henan Senyuan Electric Co., Ltd.

Pre-Tax Profit

At CNY 98.06 MM has Grown at 237.26%

over average net sales of the previous four periods of CNY 29.08 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 96.48 MM has Grown at 317.99%

over average net sales of the previous four periods of CNY 23.08 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 98.06 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 96.48 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -7.08% (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 Henan Senyuan Electric Co., Ltd.

Debt-Equity Ratio

Highest at 67.67 % 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

Operating Cash Flow

Lowest at CNY -23.5 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Lowest at 2.94 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0.8 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio