Huizhou China Eagle Electronic Technology, Inc. (002579) 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

Huizhou China Eagle Electronic Technology, Inc.

Why is Huizhou China Eagle Electronic Technology, Inc. ?

Poor Management Efficiency with a low ROCE of 1.91%

The company has been able to generate a Return on Capital Employed (avg) of 1.91% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 3.90% and Operating profit at -23.24% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 2.16% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.90% and Operating profit at -23.24% over the last 5 years

Flat results in Mar 26

NET PROFIT(HY) At CNY 7.38 MM has Grown at -43.2%
INTEREST COVERAGE RATIO(Q) Lowest at 105.84
DEBT-EQUITY RATIO (HY) Highest at 105.42 %

With ROE of 0.69%, it has a very expensive valuation with a 4.07 Price to Book Value

Over the past year, while the stock has generated a return of 25.45%, its profits have risen by 140.1% ; the PEG ratio of the company is 4.2

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 Huizhou China Eagle Electronic Technology, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Huizhou China Eagle Electronic Technology, Inc.

18.64%

2.58

57.85%

China Shanghai Composite

8.25%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.90%

EBIT Growth (5y)

-23.24%

EBIT to Interest (avg)

0.35

Debt to EBITDA (avg)

12.64

Net Debt to Equity (avg)

0.96

Sales to Capital Employed (avg)

0.56

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.80%

ROE (avg)

2.16%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

888

Industry P/E

Price to Book Value

6.08

EV to EBIT

260.90

EV to EBITDA

58.98

EV to Capital Employed

3.48

EV to Sales

5.54

PEG Ratio

6.34

Dividend Yield

ROCE (Latest)

1.33%

ROE (Latest)

0.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly 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

11What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 3.57 MM has Grown at 341.62%

OPERATING CASH FLOW(Y)

Highest at CNY 355.55 MM

RAW MATERIAL COST(Y)

Fallen by -21.4% (YoY

NET PROFIT(9M)

Higher at CNY 14.7 MM

-13What is not working for the Company

NET PROFIT(HY)

At CNY 7.38 MM has Grown at -43.2%

INTEREST COVERAGE RATIO(Q)

Lowest at 105.84

DEBT-EQUITY RATIO (HY)

Highest at 105.42 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.6 times

NET SALES(Q)

Lowest at CNY 699.24 MM

OPERATING PROFIT(Q)

Lowest at CNY 18.09 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.59 %

Here's what is working for Huizhou China Eagle Electronic Technology, Inc.

Pre-Tax Profit

At CNY 3.57 MM has Grown at 341.62%

over average net sales of the previous four periods of CNY 0.81 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Highest at CNY 355.55 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -21.4% (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 Huizhou China Eagle Electronic Technology, Inc.

Net Profit

At CNY 7.38 MM has Grown at -43.2%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 105.84

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 699.24 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 699.24 MM has Fallen at -10.94%

over average net sales of the previous four periods of CNY 785.16 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 18.09 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.59 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 105.42 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 3.6 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio