Hongli Zhihui Group Co., Ltd. (300219) 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

Hongli Zhihui Group Co., Ltd.

Why is Hongli Zhihui Group Co., Ltd. ?

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)

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

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

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 39.22%, 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

Market Beating Performance

The stock has generated a return of 39.22% in the last 1 year, much higher than market (China Shanghai Composite) returns of 21.43%

Real-Time Research Report

Verdict Report

How much should you hold?

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.

39.45%

1.34

39.93%

China Shanghai Composite

20.18%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.39%

EBIT Growth (5y)

-0.50%

EBIT to Interest (avg)

6.25

Debt to EBITDA (avg)

1.88

Net Debt to Equity (avg)

0.22

Sales to Capital Employed (avg)

1.02

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

145.14%

Pledged Shares

Institutional Holding

ROCE (avg)

4.55%

ROE (avg)

7.21%

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

2.16

EV to EBIT

53.68

EV to EBITDA

20.72

EV to Capital Employed

1.97

EV to Sales

1.40

PEG Ratio

1.40

Dividend Yield

1.28%

ROCE (Latest)

3.67%

ROE (Latest)

4.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

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

13What is working for the Company

NET PROFIT(HY)

At CNY 42.23 MM has Grown at 186.77%

OPERATING CASH FLOW(Y)

Highest at CNY 692.24 MM

RAW MATERIAL COST(Y)

Fallen by -20.13% (YoY

CASH AND EQV(HY)

Highest at CNY 2,232.5 MM

-12What is not working for the Company

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

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.48 times

NET SALES(Q)

At CNY 971.18 MM has Fallen at -10.75%

OPERATING PROFIT(Q)

Lowest at CNY 4.03 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.41 %

Here's what is working for Hongli Zhihui Group Co., Ltd.

Operating Cash Flow

Highest at CNY 692.24 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 2,232.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -20.13% (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.

Pre-Tax Profit

At CNY 15.26 MM has Fallen at -58.84%

over average net sales of the previous four periods of CNY 37.06 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 10.03 MM has Fallen at -62.92%

over average net sales of the previous four periods of CNY 27.05 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 74.26

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At CNY 971.18 MM has Fallen at -10.75%

over average net sales of the previous four periods of CNY 1,088.14 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 4.03 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.41 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 4.48 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio