ScoreWhy is Huarui Electrical Appliance Co. Ltd. ?
1
Poor Management Efficiency with a low ROCE of 4.20%
- The company has been able to generate a Return on Capital Employed (avg) of 4.20% signifying low profitability per unit of total capital (equity and debt)
2
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of 2.20% and Operating profit at 7.63% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 2.51% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 2.20% and Operating profit at 7.63% over the last 5 years
4
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 93.33%, its profits have risen by 89.3%
- At the current price, the company has a high dividend yield of 0
Real-Time Research ReportHow 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 Electronics & Appliances)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Huarui Electrical Appliance Co. Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Huarui Electrical Appliance Co. Ltd.
85.26%
3.24
56.91%
China Shanghai Composite
15.17%
1.02
14.86%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.20%
EBIT Growth (5y)
7.63%
EBIT to Interest (avg)
0
Debt to EBITDA (avg)
3.50
Net Debt to Equity (avg)
0.42
Sales to Capital Employed (avg)
0.84
Tax Ratio
7.99%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.20%
ROE (avg)
2.51%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
3.71
EV to EBIT
56.65
EV to EBITDA
29.32
EV to Capital Employed
3.11
EV to Sales
2.63
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
5.49%
ROE (Latest)
-1.74%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend17What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -8.46% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 24.96 %
INVENTORY TURNOVER RATIO(HY)
Highest at 3.77 times
DEBTORS TURNOVER RATIO(HY)
Highest at 3.28 times
NET SALES(Q)
Highest at CNY 212.86 MM
PRE-TAX PROFIT(Q)
Highest at CNY 9.11 MM
NET PROFIT(Q)
Highest at CNY 8.95 MM
EPS(Q)
Highest at CNY 0.05
-5What is not working for the Company
INTEREST(Q)
At CNY 1.44 MM has Grown at 368.85%
OPERATING PROFIT(Q)
Lowest at CNY 12.72 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 5.98 %
Here's what is working for Huarui Electrical Appliance Co. Ltd.
Pre-Tax Profit
At CNY 9.11 MM has Grown at 517.4%
over average net sales of the previous four periods of CNY -2.18 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 8.95 MM has Grown at 495.85%
over average net sales of the previous four periods of CNY -2.26 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Net Sales
Highest at CNY 212.86 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Pre-Tax Profit
Highest at CNY 9.11 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 8.95 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.05
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Debt-Equity Ratio
Lowest at 24.96 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 3.77 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 3.28 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -8.46% (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 Huarui Electrical Appliance Co. Ltd.
Interest
At CNY 1.44 MM has Grown at 368.85%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Profit
Lowest at CNY 12.72 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 5.98 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
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