ScoreWhy is Hongli Zhihui Group Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 4.55%
- The company has been able to generate a Return on Capital Employed (avg) of 4.55% 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 5.39% and Operating profit at -0.50% over the last 5 years
3
Flat results in Mar 26
- PRE-TAX PROFIT(Q) At CNY 15.26 MM has Fallen at -58.84%
- NET PROFIT(Q) At CNY 10.03 MM has Fallen at -62.92%
- INTEREST COVERAGE RATIO(Q) Lowest at 74.26
4
With ROE of 4.40%, it has a attractive valuation with a 2.16 Price to Book Value
- Over the past year, while the stock has generated a return of 27.11%, its profits have risen by 35.2% ; the PEG ratio of the company is 1.4
- At the current price, the company has a high dividend yield of 1.3
5
Market Beating Performance
- The stock has generated a return of 27.11% in the last 1 year, much higher than market (China Shanghai Composite) returns of 16.83%
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Hongli Zhihui Group Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Other Electrical Equipment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hongli Zhihui Group Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Hongli Zhihui Group Co., Ltd.
-15.53%
1.10
42.27%
China Shanghai Composite
3.0%
1.20
14.07%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.39%
EBIT Growth (5y)
-0.50%
EBIT to Interest (avg)
5.97
Debt to EBITDA (avg)
1.84
Net Debt to Equity (avg)
0.22
Sales to Capital Employed (avg)
1.02
Tax Ratio
25.61%
Dividend Payout Ratio
145.14%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.34%
ROE (avg)
7.21%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
62
Industry P/E
Price to Book Value
2.73
EV to EBIT
66.50
EV to EBITDA
25.67
EV to Capital Employed
2.44
EV to Sales
1.73
PEG Ratio
1.76
Dividend Yield
1.76%
ROCE (Latest)
3.67%
ROE (Latest)
4.40%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
NET PROFIT(HY)
At CNY 41.22 MM has Grown at 164.4%
DEBT-EQUITY RATIO
(HY)
Lowest at 18.27 %
RAW MATERIAL COST(Y)
Fallen by -10.41% (YoY
CASH AND EQV(HY)
Highest at CNY 2,443.5 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 2.71 times
NET SALES(Q)
Highest at CNY 1,295.69 MM
-3What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 440.05 MM
Here's what is working for Hongli Zhihui Group Co., Ltd.
Net Profit
At CNY 41.22 MM has Grown at 164.4%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Debt-Equity Ratio
Lowest at 18.27 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Sales
Highest at CNY 1,295.69 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Net Sales
At CNY 1,295.69 MM has Grown at 17.42%
over average net sales of the previous four periods of CNY 1,103.48 MMMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Cash and Eqv
Highest at CNY 2,443.5 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 2.71 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -10.41% (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 Hongli Zhihui Group Co., Ltd.
Operating Cash Flow
Lowest at CNY 440.05 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
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