Huizhong Instrumentation Co. Ltd. (300371) 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

Huizhong Instrumentation Co. Ltd.

Why is Huizhong Instrumentation Co. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 2.24% and Operating profit at -6.89% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

INTEREST(9M) At CNY 0.05 MM has Grown at 46.67%
NET PROFIT(9M) At CNY 43.67 MM has Grown at -33.6%
NET SALES(9M) At CNY 313 MM has Grown at -8.69%

With ROE of 6.97%, it has a fair valuation with a 1.68 Price to Book Value

Over the past year, while the stock has generated a return of 25.24%, its profits have fallen by -3.6%
At the current price, the company has a high dividend yield of 0.9

Market Beating Performance

The stock has generated a return of 25.24% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Huizhong Instrumentation 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 Huizhong Instrumentation Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Huizhong Instrumentation Co. Ltd.

11.95%

1.26

44.69%

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)

2.24%

EBIT Growth (5y)

-6.89%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

0.41

Tax Ratio

19.51%

Dividend Payout Ratio

30.81%

Pledged Shares

Institutional Holding

ROCE (avg)

11.86%

ROE (avg)

11.48%

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

1.68

EV to EBIT

20.69

EV to EBITDA

15.43

EV to Capital Employed

1.86

EV to Sales

3.71

PEG Ratio

Dividend Yield

0.94%

ROCE (Latest)

8.98%

ROE (Latest)

6.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 120.75 MM

NET SALES(Q)

At CNY 72.19 MM has Grown at 49.65%

RAW MATERIAL COST(Y)

Fallen by -1.11% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -11.2 %

PRE-TAX PROFIT(Q)

At CNY 7.31 MM has Grown at 52.16%

NET PROFIT(Q)

At CNY 6.55 MM has Grown at 67.87%

-19What is not working for the Company

INTEREST(9M)

At CNY 0.05 MM has Grown at 46.67%

NET PROFIT(9M)

At CNY 43.67 MM has Grown at -33.6%

NET SALES(9M)

At CNY 313 MM has Grown at -8.69%

ROCE(HY)

Lowest at 5.51%

OPERATING PROFIT(Q)

Lowest at CNY 4.39 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.08 %

Here's what is working for Huizhong Instrumentation Co. Ltd.

Operating Cash Flow

Highest at CNY 120.75 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)

Net Sales

At CNY 72.19 MM has Grown at 49.65%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 7.31 MM has Grown at 52.16%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 6.55 MM has Grown at 67.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at -11.2 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -1.11% (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 Huizhong Instrumentation Co. Ltd.

Interest

At CNY 0.05 MM has Grown at 46.67%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 4.39 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.08 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales