Huarui Electrical Appliance Co. Ltd. (300626) 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

Huarui Electrical Appliance Co. Ltd.

Why is Huarui Electrical Appliance Co. Ltd. ?

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)

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 2.98% and Operating profit at 8.06% 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

Poor long term growth as Net Sales has grown by an annual rate of 2.98% and Operating profit at 8.06% over the last 5 years

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 17.31%, its profits have risen by 89.3%
At the current price, the company has a high dividend yield of 0

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 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.

19.04%

1.70

48.51%

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)

2.98%

EBIT Growth (5y)

8.06%

EBIT to Interest (avg)

Debt to EBITDA (avg)

3.50

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

0.79

Tax Ratio

7.99%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.20%

ROE (avg)

2.51%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.88

EV to EBIT

30.65

EV to EBITDA

15.86

EV to Capital Employed

1.68

EV to Sales

1.43

PEG Ratio

Dividend Yield

ROCE (Latest)

5.49%

ROE (Latest)

-1.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

Bullish

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

18What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 3.58 MM has Grown at 623.06%

NET SALES(9M)

At CNY 598.67 MM has Grown at 18.72%

NET PROFIT(HY)

Higher at CNY -17.86 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.73%

DEBTORS TURNOVER RATIO(HY)

Highest at 3.1%

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 41.67 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 551.03

RAW MATERIAL COST(Y)

Grown by 6.8% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 9.49 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.89 %

Here's what is working for Huarui Electrical Appliance Co. Ltd.

Pre-Tax Profit

At CNY 3.58 MM has Grown at 623.06%

over average net sales of the previous four periods of CNY -0.68 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 1.96 MM has Grown at 339.33%

over average net sales of the previous four periods of CNY -0.82 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 598.67 MM has Grown at 18.72%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 3.73%

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 3.1%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Huarui Electrical Appliance Co. Ltd.

Operating Cash Flow

Lowest at CNY 41.67 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)

Interest Coverage Ratio

Lowest at 551.03

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 9.49 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.89 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 6.8% (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