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 hold?

Overall Portfolio exposure to Hexing Electrical 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 Hexing Electrical Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hexing Electrical Co., Ltd.

2.49%

-0.57

37.89%

China Shanghai Composite

15.17%

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)

9.68%

EBIT Growth (5y)

14.75%

EBIT to Interest (avg)

19.59

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

0.59

Tax Ratio

15.73%

Dividend Payout Ratio

33.97%

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

1.85

EV to EBIT

13.92

EV to EBITDA

12.32

EV to Capital Employed

2.22

EV to Sales

2.53

PEG Ratio

Dividend Yield

2.60%

ROCE (Latest)

15.98%

ROE (Latest)

12.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

7What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 8,737.77

NET SALES(Q)

Highest at CNY 1,444.96 MM

PRE-TAX PROFIT(Q)

Highest at CNY 372.6 MM

NET PROFIT(Q)

Highest at CNY 346.51 MM

EPS(Q)

Highest at CNY 0.7

-9What is not working for the Company

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

CASH AND EQV(HY)

Lowest at CNY 4,596 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.54 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.15 times

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

Interest Coverage Ratio

Highest at 8,737.77

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at CNY 1,444.96 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 1,444.96 MM has Grown at 25.12%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 372.6 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 346.51 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 Hexing Electrical Co., Ltd.

Debt-Equity Ratio

Highest at -19.05 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Cash Flow

Lowest at CNY 449.91 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Cash and Eqv

Lowest at CNY 4,596 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 2.54 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.15 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 22.56% (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