Huada Automotive Technology Corp., Ltd. (603358) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Huada Automotive Technology Corp., Ltd.

Why is Huada Automotive Technology Corp., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 8.12% and Operating profit at 6.48% over the last 5 years

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

INTEREST(HY) At CNY 12.84 MM has Grown at 52.36%
NET SALES(Q) At CNY 994.83 MM has Fallen at -27.68%
PRE-TAX PROFIT(Q) At CNY 39.21 MM has Fallen at -80.74%

With ROE of 7.52%, it has a very expensive valuation with a 5.15 Price to Book Value

Over the past year, while the stock has generated a return of 26.79%, its profits have fallen by -15.5%
At the current price, the company has a high dividend yield of 2

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 Auto Components & Equipments)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Huada Automotive Technology Corp., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Huada Automotive Technology Corp., Ltd.

-100.0%

1.41

32.83%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.12%

EBIT Growth (5y)

6.48%

EBIT to Interest (avg)

39.34

Debt to EBITDA (avg)

0.41

Net Debt to Equity (avg)

0.20

Sales to Capital Employed (avg)

1.18

Tax Ratio

11.12%

Dividend Payout Ratio

97.58%

Pledged Shares

Institutional Holding

ROCE (avg)

10.10%

ROE (avg)

9.33%

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

5.15

EV to EBIT

75.07

EV to EBITDA

39.28

EV to Capital Employed

4.46

EV to Sales

3.48

PEG Ratio

Dividend Yield

1.99%

ROCE (Latest)

5.94%

ROE (Latest)

7.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-42What is not working for the Company

INTEREST(HY)

At CNY 12.84 MM has Grown at 52.36%

NET SALES(Q)

At CNY 994.83 MM has Fallen at -27.68%

PRE-TAX PROFIT(Q)

At CNY 39.21 MM has Fallen at -80.74%

NET PROFIT(Q)

At CNY 45.82 MM has Fallen at -71.55%

OPERATING CASH FLOW(Y)

Lowest at CNY 146.61 MM

ROCE(HY)

Lowest at 3.22%

DEBT-EQUITY RATIO (HY)

Highest at 21.29 %

INTEREST COVERAGE RATIO(Q)

Lowest at 672.39

RAW MATERIAL COST(Y)

Grown by 24.92% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.36%

OPERATING PROFIT(Q)

Lowest at CNY 41.52 MM

Here's what is not working for Huada Automotive Technology Corp., Ltd.

Interest

At CNY 12.84 MM has Grown at 52.36%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 994.83 MM has Fallen at -27.68%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 39.21 MM has Fallen at -80.74%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 45.82 MM has Fallen at -71.55%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 672.39

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 21.29 % 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 Cash Flow

Lowest at CNY 146.61 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 41.52 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 3.36%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 24.92% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales