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

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 15.62% and Operating profit at 14.14% 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 3,330.73 MM
NET SALES(HY) At CNY 36,352.56 MM has Grown at 18.74%
DEBTORS TURNOVER RATIO(HY) Highest at 2.88 times

With ROE of 9.89%, it has a fair valuation with a 1.88 Price to Book Value

Over the past year, while the stock has generated a return of 205.20%, its profits have risen by 9.1% ; the PEG ratio of the company is 2.1
At the current price, the company has a high dividend yield of 1

Market Beating performance in long term as well as near term

Along with generating 205.20% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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.

694.78%

4.71

48.90%

China Shanghai Composite

21.43%

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)

16.39%

EBIT Growth (5y)

15.37%

EBIT to Interest (avg)

4.11

Debt to EBITDA (avg)

2.34

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

1.17

Tax Ratio

10.04%

Dividend Payout Ratio

24.86%

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

7.20

EV to EBIT

66.32

EV to EBITDA

49.36

EV to Capital Employed

5.68

EV to Sales

3.42

PEG Ratio

4.50

Dividend Yield

0.24%

ROCE (Latest)

8.57%

ROE (Latest)

10.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

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

14What is working for the Company

ROCE(HY)

Highest at 10.46%

DEBTORS TURNOVER RATIO(HY)

Highest at 2.97 times

INTEREST COVERAGE RATIO(Q)

Highest at 2,075.57

RAW MATERIAL COST(Y)

Fallen by -28.25% (YoY

CASH AND EQV(HY)

Highest at CNY 27,546.51 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 6.62 times

PRE-TAX PROFIT(Q)

Highest at CNY 1,336.93 MM

NET PROFIT(Q)

Highest at CNY 1,145.96 MM

EPS(Q)

Highest at CNY 0.45

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Interest Coverage Ratio

Highest at 2,075.57

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debtors Turnover Ratio

Highest at 2.97 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Pre-Tax Profit

Highest at CNY 1,336.93 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 1,336.93 MM has Grown at 80.93%

over average net sales of the previous four periods of CNY 738.92 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 1,145.96 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 1,145.96 MM has Grown at 73.61%

over average net sales of the previous four periods of CNY 660.07 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.45

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 27,546.51 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 6.62 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -28.25% (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