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

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 5.52% and Operating profit at -11.76% over the last 5 years

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

INTEREST(HY) At CNY 15.97 MM has Grown at 81.26%
OPERATING CASH FLOW(Y) Lowest at CNY 100.76 MM
DEBT-EQUITY RATIO (HY) Highest at 23.61 %

With ROE of 7.52%, it has a very expensive valuation with a 5.43 Price to Book Value

Over the past year, while the stock has generated a return of 31.77%, its profits have fallen by -15.5%
At the current price, the company has a high dividend yield of 1.9

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.

17.24%

2.17

33.23%

China Shanghai Composite

21.43%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.50%

EBIT Growth (5y)

-165.85%

EBIT to Interest (avg)

39.34

Debt to EBITDA (avg)

0.41

Net Debt to Equity (avg)

0.20

Sales to Capital Employed (avg)

1.11

Tax Ratio

11.12%

Dividend Payout Ratio

74.55%

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

131

Industry P/E

Price to Book Value

4.86

EV to EBIT

-440.22

EV to EBITDA

125.48

EV to Capital Employed

3.79

EV to Sales

3.64

PEG Ratio

87.05

Dividend Yield

1.27%

ROCE (Latest)

-0.86%

ROE (Latest)

3.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-34What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -248.72 MM

NET SALES(9M)

At CNY 3,236.79 MM has Grown at -14%

INTEREST(HY)

At CNY 14.75 MM has Grown at 14.95%

PRE-TAX PROFIT(Q)

At CNY -27.45 MM has Fallen at -170.01%

NET PROFIT(Q)

At CNY -76.91 MM has Fallen at -267.86%

DEBT-EQUITY RATIO (HY)

Highest at 39.38 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.19 times

RAW MATERIAL COST(Y)

Grown by 22.12% (YoY

CASH AND EQV(HY)

Lowest at CNY 1,003.73 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -2.22 %

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

Pre-Tax Profit

At CNY -27.45 MM has Fallen at -170.01%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -76.91 MM has Fallen at -267.86%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 14.75 MM has Grown at 14.95%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 3,236.79 MM has Grown at -14%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY -248.72 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 39.38 % 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

Inventory Turnover Ratio

Lowest at 3.19 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit Margin

Lowest at -2.22 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 1,003.73 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 22.12% (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