Hengdian Group Tospo Lighting Co., Ltd. (603303) 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 Tospo Lighting Co., Ltd.

Why is Hengdian Group Tospo Lighting Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 12.40%

The company has been able to generate a Return on Capital Employed (avg) of 12.40% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -2.38% and Operating profit at -12.69% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 10.40% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -2.38% and Operating profit at -12.69% over the last 5 years

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

ROCE(HY) Lowest at 6.12%
RAW MATERIAL COST(Y) Grown by 10.47% (YoY)
DEBT-EQUITY RATIO (HY) Highest at -29.95 %

With ROE of 7.41%, it has a expensive valuation with a 4.14 Price to Book Value

Over the past year, while the stock has generated a return of 106.44%, its profits have fallen by -28.6%
At the current price, the company has a high dividend yield of 3.5

Real-Time Research Report

Verdict Report

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 Hengdian Group Tospo Lighting Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hengdian Group Tospo Lighting Co., Ltd.

117.9%

3.03

51.87%

China Shanghai Composite

0.9%

0.22

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.38%

EBIT Growth (5y)

-12.69%

EBIT to Interest (avg)

11.72

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.52

Sales to Capital Employed (avg)

0.92

Tax Ratio

13.05%

Dividend Payout Ratio

168.29%

Pledged Shares

Institutional Holding

ROCE (avg)

11.20%

ROE (avg)

10.40%

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

4.14

EV to EBIT

77.21

EV to EBITDA

48.23

EV to Capital Employed

7.00

EV to Sales

2.73

PEG Ratio

Dividend Yield

3.48%

ROCE (Latest)

9.06%

ROE (Latest)

7.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly 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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 710.24 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

-18What is not working for the Company

ROCE(HY)

Lowest at 6.12%

RAW MATERIAL COST(Y)

Grown by 10.47% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -29.95 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.8 times

PRE-TAX PROFIT(Q)

Lowest at CNY 38.88 MM

NET PROFIT(Q)

Lowest at CNY 30.13 MM

EPS(Q)

Lowest at CNY 0.07

Here's what is working for Hengdian Group Tospo Lighting Co., Ltd.

Operating Cash Flow

Highest at CNY 710.24 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Here's what is not working for Hengdian Group Tospo Lighting Co., Ltd.

Net Profit

At CNY 30.13 MM has Fallen at -50.35%

over average net sales of the previous four periods of CNY 60.68 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY 38.88 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 38.88 MM has Fallen at -40.77%

over average net sales of the previous four periods of CNY 65.65 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 30.13 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.07

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at -29.95 %

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

Debtors Turnover Ratio

Lowest at 2.8 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 10.47% (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

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