Hubei Jiuzhiyang Infrared System Co., Ltd. (300516) 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

Hubei Jiuzhiyang Infrared System Co., Ltd.

Why is Hubei Jiuzhiyang Infrared System Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.67%

The company has been able to generate a Return on Capital Employed (avg) of 3.67% 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 4.86% and Operating profit at -41.45% over the last 5 years

The company has declared negative results in Mar'2026 after 2 consecutive positive quarters

ROCE(HY) Lowest at 1.16%
RAW MATERIAL COST(Y) Grown by 84.29% (YoY)
NET SALES(Q) Lowest at CNY 48.11 MM

With ROE of 2.51%, it has a very expensive valuation with a 8.43 Price to Book Value

Over the past year, while the stock has generated a return of 42.48%, its profits have fallen by -45.6%
At the current price, the company has a high dividend yield of 0.1

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 Telecom - Equipment & Accessories)

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

Is Hubei Jiuzhiyang Infrared System Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Hubei Jiuzhiyang Infrared System Co., Ltd.

42.48%

0.28

73.98%

China Shanghai Composite

20.96%

1.56

13.41%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.86%

EBIT Growth (5y)

-41.45%

EBIT to Interest (avg)

32.68

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

0.47

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

28.73%

Pledged Shares

Institutional Holding

ROCE (avg)

3.67%

ROE (avg)

5.42%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

336

Industry P/E

Price to Book Value

8.43

EV to EBIT

3684.20

EV to EBITDA

387.65

EV to Capital Employed

11.78

EV to Sales

17.19

PEG Ratio

Dividend Yield

0.11%

ROCE (Latest)

0.32%

ROE (Latest)

2.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 235.26 MM

NET SALES(9M)

At CNY 534.18 MM has Grown at 28.14%

INVENTORY TURNOVER RATIO(HY)

Highest at 1.93 times

-26What is not working for the Company

ROCE(HY)

Lowest at 1.16%

RAW MATERIAL COST(Y)

Grown by 84.29% (YoY

NET SALES(Q)

Lowest at CNY 48.11 MM

OPERATING PROFIT(Q)

Lowest at CNY -23.41 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -48.66 %

PRE-TAX PROFIT(Q)

Lowest at CNY -20.65 MM

NET PROFIT(Q)

Lowest at CNY -15.12 MM

EPS(Q)

Lowest at CNY -0.06

Here's what is working for Hubei Jiuzhiyang Infrared System Co., Ltd.

Operating Cash Flow

Highest at CNY 235.26 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 1.93 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Hubei Jiuzhiyang Infrared System Co., Ltd.

Net Sales

At CNY 48.11 MM has Fallen at -27.42%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -20.65 MM has Fallen at -110.25%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -15.12 MM has Fallen at -156.01%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 48.11 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -23.41 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -48.66 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -20.65 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -15.12 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 84.29% (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