Huachangda Intelligent Equipment Group Co., Ltd. (300278) 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

Huachangda Intelligent Equipment Group Co., Ltd.

Why is Huachangda Intelligent Equipment Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.71%

The company has been able to generate a Return on Capital Employed (avg) of 2.71% 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 9.23% and Operating profit at 13.71% over the last 5 years

Negative results in Sep 25

NET PROFIT(HY) At CNY 7.92 MM has Grown at -83.14%
NET SALES(9M) At CNY 1,777.22 MM has Grown at -12.42%
ROCE(HY) Lowest at 0.67%

With ROE of 0.37%, it has a very expensive valuation with a 4.37 Price to Book Value

Over the past year, while the stock has generated a return of -25.43%, its profits have fallen by -92.4%

Below par performance in long term as well as near term

Along with generating -25.43% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How 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 Huachangda Intelligent Equipment Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Huachangda Intelligent Equipment Group Co., Ltd.

-29.15%

1.43

41.14%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.23%

EBIT Growth (5y)

13.71%

EBIT to Interest (avg)

13.84

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

1.41

Tax Ratio

33.90%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.71%

ROE (avg)

4.21%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

1197

Industry P/E

Price to Book Value

4.37

EV to EBIT

-207.31

EV to EBITDA

-740.28

EV to Capital Employed

4.79

EV to Sales

3.41

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.31%

ROE (Latest)

0.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 236.13 MM

RAW MATERIAL COST(Y)

Fallen by -3.06% (YoY

NET SALES(Q)

Highest at CNY 779.59 MM

PRE-TAX PROFIT(Q)

Highest at CNY 14.11 MM

NET PROFIT(Q)

Highest at CNY 8.99 MM

EPS(Q)

Highest at CNY 0.01

-24What is not working for the Company

NET PROFIT(HY)

At CNY 7.92 MM has Grown at -83.14%

NET SALES(9M)

At CNY 1,777.22 MM has Grown at -12.42%

ROCE(HY)

Lowest at 0.67%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.49 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.25 times

INTEREST(Q)

Highest at CNY 1.16 MM

Here's what is working for Huachangda Intelligent Equipment Group Co., Ltd.

Net Profit

At CNY 8.99 MM has Grown at 142.91%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 236.13 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 779.59 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 779.59 MM has Grown at 20.9%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 14.11 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 14.11 MM has Grown at 87.4%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 8.99 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -3.06% (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 Huachangda Intelligent Equipment Group Co., Ltd.

Interest

Highest at CNY 1.16 MM

in the last five periods and Increased by 5.54% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 2.49 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 2.25 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio