ScoreWhy is HIT Welding Industry Co., Ltd. ?
1
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)
2
Poor long term growth as Net Sales has grown by an annual rate of 1.38% and Operating profit at -61.52% over the last 5 years
3
Negative results in Mar 26
- NET PROFIT(HY) At CNY 18.24 MM has Grown at -38.55%
- ROCE(HY) Lowest at 2.77%
- DEBT-EQUITY RATIO (HY) Highest at 7.65 %
4
With ROE of 3.27%, it has a expensive valuation with a 1.13 Price to Book Value
- Over the past year, while the stock has generated a return of -5.30%, its profits have risen by 12.7% ; the PEG ratio of the company is 2.7
5
Underperformed the market in the last 1 year
- Even though the market (China Shanghai Composite) has generated returns of 16.78% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -5.30% returns
Real-Time Research ReportHow 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 Industrial Manufacturing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is HIT Welding Industry Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
HIT Welding Industry Co., Ltd.
-5.3%
1.93
71.57%
China Shanghai Composite
16.78%
1.20
13.96%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
1.38%
EBIT Growth (5y)
-61.52%
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
41.16%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
40.33%
ROE (avg)
3.88%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
35
Industry P/E
Price to Book Value
1.13
EV to EBIT
45.87
EV to EBITDA
20.97
EV to Capital Employed
1.12
EV to Sales
0.92
PEG Ratio
2.73
Dividend Yield
NA
ROCE (Latest)
2.45%
ROE (Latest)
3.27%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-13What is not working for the Company
NET PROFIT(HY)
At CNY 18.24 MM has Grown at -38.55%
ROCE(HY)
Lowest at 2.77%
DEBT-EQUITY RATIO
(HY)
Highest at 7.65 %
INTEREST COVERAGE RATIO(Q)
Lowest at 299.11
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.85 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.57 times
OPERATING PROFIT(Q)
Lowest at CNY 4.67 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 1.16 %
Here's what is not working for HIT Welding Industry Co., Ltd.
Net Profit
At CNY 18.24 MM has Grown at -38.55%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Interest Coverage Ratio
Lowest at 299.11
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Debt-Equity Ratio
Highest at 7.65 % and Grown
In each half year in the last five Semi-Annual periodsMOJO 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 4.67 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 1.16 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Inventory Turnover Ratio
Lowest at 3.85 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 2.57 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Non Operating Income
Highest at CNY 0.64 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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