Hexing Electrical Co., Ltd.

  • Market Cap: Large Cap
  • Industry: Electronics & Appliances
  • ISIN: CNE100002GS0
  • SHG: 603556
CNY
23.16
-0.21 (-0.9%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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. ?

1
Poor Management Efficiency with a low ROCE of 22.47%
  • The company has been able to generate a Return on Capital Employed (avg) of 22.47% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of 12.76% and Operating profit at 12.10% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 10.63% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 12.76% and Operating profit at 12.10% over the last 5 years
4
Flat results in Jun 26
  • NET PROFIT(9M) At CNY 325.67 MM has Grown at -46.81%
  • ROCE(HY) Lowest at 9.45%
  • INTEREST(Q) At CNY 1.61 MM has Grown at 16.04%
5
With ROE of 9.19%, it has a attractive valuation with a 1.39 Price to Book Value
  • Over the past year, while the stock has generated a return of -12.67%, its profits have fallen by -27.9%
  • At the current price, the company has a high dividend yield of 0
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Hexing Electrical Co., Ltd. should be less than 10%
  2. 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 Hexing Electrical Co., Ltd. for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
Hexing Electrical Co., Ltd.
-14.76%
-1.09
47.30%
China Shanghai Composite
3.0%
0.22
14.72%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
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)
27.47
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.31
Sales to Capital Employed (avg)
0.61
Tax Ratio
12.00%
Dividend Payout Ratio
53.06%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
20.60%
ROE (avg)
10.63%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
1.39
EV to EBIT
15.37
EV to EBITDA
13.46
EV to Capital Employed
1.49
EV to Sales
1.73
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
9.69%
ROE (Latest)
9.19%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company
NET SALES(HY)

At CNY 2,387.91 MM has Grown at 24.66%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by 0.28% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.3 times

-9What is not working for the Company
NET PROFIT(9M)

At CNY 325.67 MM has Grown at -46.81%

ROCE(HY)

Lowest at 9.45%

INTEREST(Q)

At CNY 1.61 MM has Grown at 16.04%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.35 times

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

Net Sales
At CNY 2,387.91 MM has Grown at 24.66%
Year on Year (YoY)
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio
Highest at 3.3 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost
Fallen by 0.28% (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

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

Net Profit
At CNY 325.67 MM has Grown at -46.81%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest
At CNY 1.61 MM has Grown at 16.04%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio
Lowest at 2.35 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling inventory has slowed

Inventory Turnover Ratio

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