Hexing Electrical Co., Ltd. (603556) 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

Hexing Electrical Co., Ltd.

Why is Hexing Electrical Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 9.68% and Operating profit at 14.75% over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 449.91 MM
DEBT-EQUITY RATIO (HY) Highest at -19.05 %
RAW MATERIAL COST(Y) Grown by 22.56% (YoY)

With ROE of 12.44%, it has a attractive valuation with a 1.85 Price to Book Value

Over the past year, while the stock has generated a return of 18.52%, its profits have fallen by -20.1%
At the current price, the company has a high dividend yield of 2.6

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 Hexing Electrical Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hexing Electrical Co., Ltd.

-13.08%

-0.57

37.89%

China Shanghai Composite

20.18%

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)

12.76%

EBIT Growth (5y)

12.10%

EBIT to Interest (avg)

19.59

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

0.61

Tax Ratio

15.73%

Dividend Payout Ratio

53.06%

Pledged Shares

Institutional Holding

ROCE (avg)

22.47%

ROE (avg)

10.63%

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

1.59

EV to EBIT

18.00

EV to EBITDA

15.77

EV to Capital Employed

1.74

EV to Sales

2.03

PEG Ratio

Dividend Yield

2.88%

ROCE (Latest)

9.69%

ROE (Latest)

9.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

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

6What is working for the Company

NET SALES(Q)

At CNY 1,126.35 MM has Grown at 43.58%

-21What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 524.96 MM

ROCE(HY)

Lowest at 9.23%

PRE-TAX PROFIT(Q)

At CNY 84.92 MM has Fallen at -48.26%

NET PROFIT(Q)

At CNY 90.97 MM has Fallen at -39.82%

RAW MATERIAL COST(Y)

Grown by 19.54% (YoY

CASH AND EQV(HY)

Lowest at CNY 5,347.53 MM

OPERATING PROFIT(Q)

Lowest at CNY 67.69 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.01 %

Here's what is working for Hexing Electrical Co., Ltd.

Net Sales

At CNY 1,126.35 MM has Grown at 43.58%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Here's what is not working for Hexing Electrical Co., Ltd.

Operating Cash Flow

Lowest at CNY 524.96 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 84.92 MM has Fallen at -48.26%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 90.97 MM has Fallen at -39.82%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 67.69 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.01 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 5,347.53 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 19.54% (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