Hengtong Optic-Electric Co., Ltd. (600487) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hengtong Optic-Electric Co., Ltd.

Why is Hengtong Optic-Electric Co., Ltd. ?

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 15.50% and Operating profit at 14.86% 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 8.36% signifying low profitability per unit of shareholders funds

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

OPERATING CASH FLOW(Y) Highest at CNY 3,215.84 MM
NET SALES(9M) At CNY 46,491.75 MM has Grown at 28.78%
ROCE(HY) Highest at 10.13%

With ROE of 9.89%, it has a fair valuation with a 1.82 Price to Book Value

Over the past year, while the stock has generated a return of 6.56%, its profits have risen by 9.1% ; the PEG ratio of the company is 2
At the current price, the company has a high dividend yield of 1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hengtong Optic-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 Hengtong Optic-Electric Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hengtong Optic-Electric Co., Ltd.

-100.0%

0.99

38.11%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.50%

EBIT Growth (5y)

14.86%

EBIT to Interest (avg)

4.11

Debt to EBITDA (avg)

2.34

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

1.11

Tax Ratio

10.04%

Dividend Payout Ratio

20.14%

Pledged Shares

Institutional Holding

ROCE (avg)

6.95%

ROE (avg)

8.36%

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

1.82

EV to EBIT

21.41

EV to EBITDA

13.52

EV to Capital Employed

1.60

EV to Sales

1.00

PEG Ratio

2.02

Dividend Yield

1.04%

ROCE (Latest)

7.49%

ROE (Latest)

9.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 3,215.84 MM

NET SALES(9M)

At CNY 46,491.75 MM has Grown at 28.78%

ROCE(HY)

Highest at 10.13%

DEBT-EQUITY RATIO (HY)

Lowest at 30.4 %

DEBTORS TURNOVER RATIO(HY)

Highest at 2.73%

-4What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.06%

NET SALES(Q)

At CNY 13,235.14 MM has Fallen at -11.43%

OPERATING PROFIT(Q)

Lowest at CNY 632.59 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.78 %

Here's what is working for Hengtong Optic-Electric Co., Ltd.

Operating Cash Flow

Highest at CNY 3,215.84 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)

Debt-Equity Ratio

Lowest at 30.4 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 2.73%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Hengtong Optic-Electric Co., Ltd.

Net Sales

At CNY 13,235.14 MM has Fallen at -11.43%

over average net sales of the previous four periods of CNY 14,943.63 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 632.59 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.78 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 6.06%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio