Hengong Precision Equipment Co., Ltd. () 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

Hengong Precision Equipment Co., Ltd.

Why is Hengong Precision Equipment Co., Ltd. ?

With a growth in Net Profit of 210.56%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 68.35 MM
NET SALES(Q) Highest at CNY 318.69 MM
NET PROFIT(Q) Highest at CNY 61.89 MM

With ROE of 7.86%, it has a very attractive valuation with a 1.10 Price to Book Value

Over the past year, while the stock has generated a return of 7.42%, its profits have risen by 189.5% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Hengong Precision Equipment Co., Ltd. should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

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

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

Is Hengong Precision Equipment Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hengong Precision Equipment Co., Ltd.

4.62%

1.87

63.37%

China Shanghai Composite

19.22%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.16%

EBIT Growth (5y)

-50.83%

EBIT to Interest (avg)

5.23

Debt to EBITDA (avg)

5.90

Net Debt to Equity (avg)

0.48

Sales to Capital Employed (avg)

0.41

Tax Ratio

6.29%

Dividend Payout Ratio

59.17%

Pledged Shares

Institutional Holding

ROCE (avg)

4.10%

ROE (avg)

5.50%

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

1.10

EV to EBIT

70.96

EV to EBITDA

20.31

EV to Capital Employed

1.08

EV to Sales

1.79

PEG Ratio

0.07

Dividend Yield

ROCE (Latest)

1.52%

ROE (Latest)

7.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

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

24What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 68.35 MM

NET SALES(Q)

Highest at CNY 318.69 MM

NET PROFIT(Q)

Highest at CNY 61.89 MM

EPS(Q)

Highest at CNY 0.7

-4What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 11.3% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.27 times

OPERATING PROFIT(Q)

Lowest at CNY 10.58 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.32 %

Here's what is working for Hengong Precision Equipment Co., Ltd.

Net Profit

At CNY 61.89 MM has Grown at 249.99%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 68.35 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 318.69 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 318.69 MM has Grown at 34.14%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

Highest at CNY 61.89 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.7

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Hengong Precision Equipment Co., Ltd.

Operating Profit

Lowest at CNY 10.58 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.32 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 2.27 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 11.3% (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