HuaDian Heavy Industries Co., Ltd. (601226) 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

HuaDian Heavy Industries Co., Ltd.

Why is HuaDian Heavy Industries Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 6.17%

The company has been able to generate a Return on Capital Employed (avg) of 6.17% 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 2.36% and Operating profit at 18.72% over the last 5 years

Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY -530.63 MM
DEBT-EQUITY RATIO (HY) Highest at 15.84 %
CASH AND EQV(HY) Lowest at CNY 2,222.26 MM

With ROE of 3.07%, it has a expensive valuation with a 1.87 Price to Book Value

Over the past year, while the stock has generated a return of 68.27%, its profits have risen by 69.4% ; the PEG ratio of the company is 0.9
At the current price, the company has a high dividend yield of 0.5

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 Construction)

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

Is HuaDian Heavy Industries Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

HuaDian Heavy Industries Co., Ltd.

10.86%

2.24

47.22%

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)

2.48%

EBIT Growth (5y)

5.79%

EBIT to Interest (avg)

15.85

Debt to EBITDA (avg)

0.11

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

1.46

Tax Ratio

23.95%

Dividend Payout Ratio

35.61%

Pledged Shares

Institutional Holding

ROCE (avg)

6.17%

ROE (avg)

4.58%

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

1.89

EV to EBIT

41.96

EV to EBITDA

25.55

EV to Capital Employed

1.81

EV to Sales

0.82

PEG Ratio

1.14

Dividend Yield

0.48%

ROCE (Latest)

4.32%

ROE (Latest)

4.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly 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

15What is working for the Company

NET SALES(HY)

At CNY 5,516.17 MM has Grown at 34.15%

NET PROFIT(HY)

At CNY -15.53 MM has Grown at 79.28%

ROCE(HY)

Highest at 4.37%

RAW MATERIAL COST(Y)

Fallen by -33.11% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 10.84 times

DEBTORS TURNOVER RATIO(HY)

Highest at 2.03 times

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -408.09 MM

INTEREST(Q)

At CNY 6.91 MM has Grown at 58.3%

CASH AND EQV(HY)

Lowest at CNY 2,705.03 MM

OPERATING PROFIT(Q)

Lowest at CNY -44.91 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -2.76 %

Here's what is working for HuaDian Heavy Industries Co., Ltd.

Net Sales

At CNY 5,516.17 MM has Grown at 34.15%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY -15.53 MM has Grown at 79.28%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 10.84 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 2.03 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -33.11% (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 HuaDian Heavy Industries Co., Ltd.

Interest

At CNY 6.91 MM has Grown at 58.3%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -408.09 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 -44.91 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -2.76 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 2,705.03 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents