Huaming Power Equipment Co., Ltd. (002270) 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

Huaming Power Equipment Co., Ltd.

Why is Huaming Power Equipment Co., Ltd. ?

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at CNY 719.8 MM
ROCE(HY) Highest at 21.12%
INTEREST COVERAGE RATIO(Q) Highest at 8,768.06

With ROE of 21.34%, it has a very attractive valuation with a 4.74 Price to Book Value

Over the past year, while the stock has generated a return of 43.46%, its profits have risen by 18.1% ; the PEG ratio of the company is 1.2
At the current price, the company has a high dividend yield of 0.2

Consistent Returns over the last 3 years

Along with generating 43.46% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Huaming Power Equipment Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Huaming Power Equipment Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Huaming Power Equipment Co., Ltd.

42.68%

0.68

37.73%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.37%

EBIT Growth (5y)

24.78%

EBIT to Interest (avg)

23.11

Debt to EBITDA (avg)

0.30

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

0.54

Tax Ratio

14.76%

Dividend Payout Ratio

79.66%

Pledged Shares

Institutional Holding

ROCE (avg)

16.04%

ROE (avg)

12.12%

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

4.74

EV to EBIT

20.19

EV to EBITDA

17.49

EV to Capital Employed

5.69

EV to Sales

6.26

PEG Ratio

1.23

Dividend Yield

0.24%

ROCE (Latest)

28.21%

ROE (Latest)

21.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 719.8 MM

ROCE(HY)

Highest at 21.12%

INTEREST COVERAGE RATIO(Q)

Highest at 8,768.06

RAW MATERIAL COST(Y)

Fallen by -26.14% (YoY

CASH AND EQV(HY)

Highest at CNY 2,420.65 MM

DEBT-EQUITY RATIO (HY)

Lowest at -20.04 %

DEBTORS TURNOVER RATIO(HY)

Highest at 1.76%

OPERATING PROFIT(Q)

Highest at CNY 245.67 MM

NET PROFIT(Q)

Highest at CNY 197.15 MM

EPS(Q)

Highest at CNY 0.22

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Huaming Power Equipment Co., Ltd.

Interest Coverage Ratio

Highest at 8,768.06

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at CNY 719.8 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Operating Profit

Highest at CNY 245.67 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Net Profit

Highest at CNY 197.15 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.22

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 2,420.65 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -20.04 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 1.76%

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 -26.14% (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