HIT Welding Industry Co., Ltd. () 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

HIT Welding Industry Co., Ltd.

Why is HIT Welding Industry Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 40.33%

The company has been able to generate a Return on Capital Employed (avg) of 40.33% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 1.12% and Operating profit at -59.28% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(9M) At CNY 5.35 MM has Grown at 12.43%
DEBT-EQUITY RATIO (HY) Highest at 3.79 %
INTEREST COVERAGE RATIO(Q) Lowest at 708.72

With ROE of 3.11%, it has a fair valuation with a 3.39 Price to Book Value

Over the past year, while the stock has generated a return of 103.13%, its profits have fallen by -20.4%

Market Beating Performance

The stock has generated a return of 103.13% in the last 1 year, much higher than market (China Shanghai Composite) returns of 17.07%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to HIT Welding Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is HIT Welding Industry Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

HIT Welding Industry Co., Ltd.

103.13%

2.67

87.04%

China Shanghai Composite

16.67%

1.14

14.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.12%

EBIT Growth (5y)

-59.28%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.12

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.89

Tax Ratio

5.15%

Dividend Payout Ratio

40.41%

Pledged Shares

Institutional Holding

ROCE (avg)

40.33%

ROE (avg)

3.88%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

109

Industry P/E

Price to Book Value

3.39

EV to EBIT

213.20

EV to EBITDA

59.44

EV to Capital Employed

3.10

EV to Sales

2.89

PEG Ratio

Dividend Yield

ROCE (Latest)

1.46%

ROE (Latest)

3.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

12What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 17.45 MM has Grown at 397.32%

NET PROFIT(Q)

At CNY 13.81 MM has Grown at 416.66%

RAW MATERIAL COST(Y)

Fallen by -45.9% (YoY

NET SALES(Q)

At CNY 458.16 MM has Grown at 21.65%

-9What is not working for the Company

INTEREST(9M)

At CNY 5.35 MM has Grown at 12.43%

DEBT-EQUITY RATIO (HY)

Highest at 3.79 %

INTEREST COVERAGE RATIO(Q)

Lowest at 708.72

OPERATING PROFIT(Q)

Lowest at CNY 12.1 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.64 %

Here's what is working for HIT Welding Industry Co., Ltd.

Pre-Tax Profit

At CNY 17.45 MM has Grown at 397.32%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 13.81 MM has Grown at 416.66%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 458.16 MM has Grown at 21.65%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -45.9% (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 HIT Welding Industry Co., Ltd.

Interest

At CNY 5.35 MM has Grown at 12.43%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 708.72

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 3.79 % 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 Profit

Lowest at CNY 12.1 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.64 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales