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

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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 8.92% and Operating profit at 19.06% over the last 5 years

Flat results in Mar 25

INTEREST COVERAGE RATIO(Q) Lowest at 3,750.65
OPERATING CASH FLOW(Y) Lowest at CNY 689.76 MM
CASH AND EQV(HY) Lowest at CNY 6,239.71 MM

With ROE of 12.44%, it has a attractive valuation with a 1.87 Price to Book Value

Over the past year, while the stock has generated a return of -9.87%, its profits have fallen by -20.1%
At the current price, the company has a high dividend yield of 2.6

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 14.77% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.87% returns

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.

-10.93%

-0.81

36.46%

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)

8.92%

EBIT Growth (5y)

19.06%

EBIT to Interest (avg)

19.59

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

0.57

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

1.87

EV to EBIT

14.10

EV to EBITDA

12.48

EV to Capital Employed

2.25

EV to Sales

2.56

PEG Ratio

Dividend Yield

2.58%

ROCE (Latest)

15.98%

ROE (Latest)

12.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-21What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 3,750.65

OPERATING CASH FLOW(Y)

Lowest at CNY 689.76 MM

CASH AND EQV(HY)

Lowest at CNY 6,239.71 MM

DEBT-EQUITY RATIO (HY)

Highest at -30.36 %

NET SALES(Q)

Fallen at -14.01%

OPERATING PROFIT(Q)

Lowest at CNY 77.31 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.02 %

PRE-TAX PROFIT(Q)

Fallen at -37.33%

NET PROFIT(Q)

Lowest at CNY 151.15 MM

EPS(Q)

Lowest at CNY 0.29

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

Interest Coverage Ratio

Lowest at 3,750.65 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 689.76 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 771.44 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -14.01%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 77.31 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 10.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 164.12 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

Fallen at -37.33%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 151.15 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

Fallen at -33.33%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.29

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 6,239.71 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -30.36 %

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

Non Operating Income

Highest at CNY 0.58 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income