Why is Hubei Jiuzhiyang Infrared System Co., Ltd. ?
1
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)
2
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
3
With a growth in Net Profit of 263.79%, the company declared Very Positive results in Sep 25
- The company has declared positive results in Jan 70 after 5 consecutive negative quarters
- PRE-TAX PROFIT(Q) At CNY 11.62 MM has Grown at 309.38%
- NET PROFIT(Q) At CNY 12.32 MM has Grown at 263.79%
- NET SALES(Q) At CNY 158.88 MM has Grown at 71.94%
4
With ROE of 1.84%, it has a very expensive valuation with a 5.09 Price to Book Value
- Over the past year, while the stock has generated a return of 54.04%, its profits have fallen by -71.3%
- At the current price, the company has a high dividend yield of 0.2
5
Market Beating Performance
- The stock has generated a return of 54.04% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.17%
How much should you hold?
- Overall Portfolio exposure to Hubei Jiuzhiyang Infrared System Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hubei Jiuzhiyang Infrared System Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Hubei Jiuzhiyang Infrared System Co., Ltd.
60.71%
1.67
69.29%
China Shanghai Composite
15.17%
1.02
14.86%
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)
0
Net Debt to Equity (avg)
-0.13
Sales to Capital Employed (avg)
0.49
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
40.09%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.67%
ROE (avg)
5.42%
Valuation Key Factors 
Factor
Value
P/E Ratio
277
Industry P/E
Price to Book Value
5.09
EV to EBIT
-592.79
EV to EBITDA
277.35
EV to Capital Employed
6.95
EV to Sales
11.31
PEG Ratio
NA
Dividend Yield
0.19%
ROCE (Latest)
-1.17%
ROE (Latest)
1.84%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
17What is working for the Company
PRE-TAX PROFIT(Q)
At CNY 11.62 MM has Grown at 309.38%
NET PROFIT(Q)
At CNY 12.32 MM has Grown at 263.79%
NET SALES(Q)
At CNY 158.88 MM has Grown at 71.94%
RAW MATERIAL COST(Y)
Fallen by -0.15% (YoY
-3What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 99.6 MM
Here's what is working for Hubei Jiuzhiyang Infrared System Co., Ltd.
Pre-Tax Profit
At CNY 11.62 MM has Grown at 309.38%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 12.32 MM has Grown at 263.79%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Net Sales
At CNY 158.88 MM has Grown at 71.94%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (CNY MM)
Raw Material Cost
Fallen by -0.15% (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 Hubei Jiuzhiyang Infrared System Co., Ltd.
Operating Cash Flow
Lowest at CNY 99.6 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)






