Henan Thinker Automatic Equipment Co., Ltd. (603508) 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 Thinker Automatic Equipment Co., Ltd.

Why is Henan Thinker Automatic Equipment Co., Ltd. ?

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 691.81 MM
ROCE(HY) Highest at 14.63%
RAW MATERIAL COST(Y) Fallen by -13.68% (YoY)

With ROE of 14.93%, it has a very attractive valuation with a 2.80 Price to Book Value

Over the past year, while the stock has generated a return of 4.59%, its profits have risen by 51.6% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 10.6

Underperformed the market in the last 1 year

The stock has generated a return of 4.59% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Henan Thinker Automatic Equipment 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 Thinker Automatic Equipment Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Henan Thinker Automatic Equipment Co., Ltd.

4.26%

0.89

40.56%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.34%

EBIT Growth (5y)

50.83%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.34

Sales to Capital Employed (avg)

0.30

Tax Ratio

12.55%

Dividend Payout Ratio

100.00%

Pledged Shares

Institutional Holding

ROCE (avg)

12.75%

ROE (avg)

9.09%

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

2.80

EV to EBIT

16.40

EV to EBITDA

15.16

EV to Capital Employed

3.76

EV to Sales

6.88

PEG Ratio

0.36

Dividend Yield

10.59%

ROCE (Latest)

22.95%

ROE (Latest)

14.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 691.81 MM

ROCE(HY)

Highest at 14.63%

RAW MATERIAL COST(Y)

Fallen by -13.68% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 1.71 times

-20What is not working for the Company

INTEREST(9M)

At CNY 0.18 MM has Grown at inf%

INTEREST COVERAGE RATIO(Q)

Lowest at 56,077.6

CASH AND EQV(HY)

Lowest at CNY 2,581.75 MM

DEBT-EQUITY RATIO (HY)

Highest at -24.3 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.2 times

NET SALES(Q)

Lowest at CNY 264.12 MM

OPERATING PROFIT(Q)

Lowest at CNY 100.09 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 37.89 %

PRE-TAX PROFIT(Q)

Lowest at CNY 113.48 MM

NET PROFIT(Q)

Lowest at CNY 92.91 MM

EPS(Q)

Lowest at CNY 0.24

Here's what is working for Henan Thinker Automatic Equipment Co., Ltd.

Operating Cash Flow

Highest at CNY 691.81 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Highest at 1.71 times

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 -13.68% (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 Thinker Automatic Equipment Co., Ltd.

Interest

At CNY 0.18 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 264.12 MM has Fallen at -23.9%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 56,077.6

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 264.12 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 100.09 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 37.89 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 113.48 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

Fallen at -29.22%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 92.91 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

Fallen at -32.52%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.24

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 2,581.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -24.3 %

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

Inventory Turnover Ratio

Lowest at 1.2 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio