Hengdian Group DMEGC Magnetics Co., Ltd. (002056) 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

Hengdian Group DMEGC Magnetics Co., Ltd.

Why is Hengdian Group DMEGC Magnetics Co., Ltd. ?

With ROE of 24.14%, it has a very attractive valuation with a 2.97 Price to Book Value

Over the past year, while the stock has generated a return of 39.92%, its profits have risen by 71.3% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 2.4

Market Beating Performance

The stock has generated a return of 39.92% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.17%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Hengdian Group DMEGC Magnetics Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Hengdian Group DMEGC Magnetics Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hengdian Group DMEGC Magnetics Co., Ltd.

35.73%

1.66

39.17%

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)

25.34%

EBIT Growth (5y)

32.69%

EBIT to Interest (avg)

53.84

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

1.33

Tax Ratio

16.84%

Dividend Payout Ratio

39.75%

Pledged Shares

Institutional Holding

ROCE (avg)

36.33%

ROE (avg)

20.26%

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

2.97

EV to EBIT

4.51

EV to EBITDA

4.00

EV to Capital Employed

3.82

EV to Sales

1.34

PEG Ratio

0.17

Dividend Yield

2.40%

ROCE (Latest)

84.79%

ROE (Latest)

24.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 5,313.53 MM

NET SALES(HY)

At CNY 12,281.44 MM has Grown at 31.62%

RAW MATERIAL COST(Y)

Fallen by -1,700% (YoY

-11What is not working for the Company

INTEREST(HY)

At CNY 23.72 MM has Grown at 24.59%

INTEREST COVERAGE RATIO(Q)

Lowest at 4,737.95

OPERATING PROFIT(Q)

Lowest at CNY 538.41 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.63 %

NET PROFIT(Q)

At CNY 407.82 MM has Fallen at -36.61%

Here's what is working for Hengdian Group DMEGC Magnetics Co., Ltd.

Net Sales

At CNY 12,281.44 MM has Grown at 31.62%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 5,313.53 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -1,700% (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 Hengdian Group DMEGC Magnetics Co., Ltd.

Interest

At CNY 23.72 MM has Grown at 24.59%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 4,737.95

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 538.41 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 9.63 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY 407.82 MM has Fallen at -36.61%

over average net sales of the previous four periods of CNY 643.37 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)