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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Huaming Power Equipment Co., Ltd.

Why is Huaming Power Equipment Co., Ltd. ?

Flat results in Dec 25

OPERATING CASH FLOW(Y) Lowest at CNY 362.06 MM
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
RAW MATERIAL COST(Y) Grown by 102.31% (YoY)

With ROE of 21.34%, it has a very attractive valuation with a 5.57 Price to Book Value

Over the past year, while the stock has generated a return of 79.29%, its profits have risen by 18.1% ; the PEG ratio of the company is 1.4
At the current price, the company has a high dividend yield of 0.2

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Market Beating performance in long term as well as near term

Along with generating 79.29% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

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.

76.2%

0.59

45.39%

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)

12.22%

EBIT Growth (5y)

30.56%

EBIT to Interest (avg)

23.11

Debt to EBITDA (avg)

0.30

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

0.59

Tax Ratio

14.76%

Dividend Payout Ratio

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

5.57

EV to EBIT

23.87

EV to EBITDA

20.68

EV to Capital Employed

6.73

EV to Sales

7.41

PEG Ratio

1.44

Dividend Yield

0.20%

ROCE (Latest)

28.21%

ROE (Latest)

21.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

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

5What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

ROCE(HY)

Highest at 22.46%

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 362.06 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 102.31% (YoY

CASH AND EQV(HY)

Lowest at CNY 1,023.5 MM

DEBT-EQUITY RATIO (HY)

Highest at 0 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

DIVIDEND PER SHARE(HY)

Lowest at CNY 0

EPS(Q)

Lowest at CNY 0

Here's what is not working for Huaming Power Equipment Co., Ltd.

Operating Cash Flow

Lowest at CNY 362.06 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

EPS

Lowest at CNY 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 1,023.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 0 %

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 0 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 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at CNY 0

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (CNY)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 102.31% (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