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

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 1.38% and Operating profit at -11.95% over the last 5 years

Flat results in Mar 26

NET PROFIT(HY) At CNY 2.44 MM has Grown at -75.18%
INTEREST(HY) At CNY 0.2 MM has Grown at 597.69%

With ROE of 5.67%, it has a fair valuation with a 1.25 Price to Book Value

Over the past year, while the stock has generated a return of -10.89%, its profits have risen by 9.6% ; the PEG ratio of the company is 2.3
At the current price, the company has a high dividend yield of 2.6

Below par performance in long term as well as near term

Along with generating -10.89% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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, Medium Return

Absolute

Risk Adjusted

Volatility

Huizhong Instrumentation Co. Ltd.

-12.65%

0.44

42.93%

China Shanghai Composite

16.78%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.38%

EBIT Growth (5y)

-11.95%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

0.39

Tax Ratio

19.51%

Dividend Payout Ratio

30.11%

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

1.25

EV to EBIT

19.49

EV to EBITDA

14.71

EV to Capital Employed

1.33

EV to Sales

2.57

PEG Ratio

2.32

Dividend Yield

2.57%

ROCE (Latest)

6.84%

ROE (Latest)

5.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 170.57 MM

RAW MATERIAL COST(Y)

Fallen by 0.35% (YoY

CASH AND EQV(HY)

Highest at CNY 603.12 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.29 times

NET SALES(Q)

At CNY 89.81 MM has Grown at 21.95%

-15What is not working for the Company

NET PROFIT(HY)

At CNY 2.44 MM has Grown at -75.18%

INTEREST(HY)

At CNY 0.2 MM has Grown at 597.69%

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

Operating Cash Flow

Highest at CNY 170.57 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 89.81 MM has Grown at 21.95%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 603.12 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 1.29 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 0.35% (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.

Net Profit

At CNY 2.44 MM has Grown at -75.18%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 0.2 MM has Grown at 597.69%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)