Huizhou Desay SV Automotive Co., Ltd. (002920) 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 Desay SV Automotive Co., Ltd.

Why is Huizhou Desay SV Automotive Co., Ltd. ?

The company has declared Positive results for the last 7 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 2,918.08 MM
NET SALES(9M) At CNY 22,336.55 MM has Grown at 17.72%
CASH AND EQV(HY) Highest at CNY 6,993.61 MM

With ROE of 25.68%, it has a expensive valuation with a 8.26 Price to Book Value

Over the past year, while the stock has generated a return of -6.03%, its profits have risen by 39.8% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 0.8

Below par performance in long term as well as near term

Along with generating -6.03% 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 Huizhou Desay SV Automotive Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Huizhou Desay SV Automotive Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Huizhou Desay SV Automotive Co., Ltd.

-7.8%

0.22

39.45%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

38.45%

EBIT Growth (5y)

49.56%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.85

Net Debt to Equity (avg)

0.32

Sales to Capital Employed (avg)

1.91

Tax Ratio

4.49%

Dividend Payout Ratio

33.06%

Pledged Shares

Institutional Holding

ROCE (avg)

13.25%

ROE (avg)

17.46%

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

8.26

EV to EBIT

40.81

EV to EBITDA

30.37

EV to Capital Employed

6.13

EV to Sales

2.74

PEG Ratio

0.81

Dividend Yield

0.83%

ROCE (Latest)

15.03%

ROE (Latest)

25.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly 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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,918.08 MM

NET SALES(9M)

At CNY 22,336.55 MM has Grown at 17.72%

CASH AND EQV(HY)

Highest at CNY 6,993.61 MM

DEBT-EQUITY RATIO (HY)

Lowest at -5.7 %

-9What is not working for the Company

ROCE(HY)

Lowest at 20.22%

INTEREST COVERAGE RATIO(Q)

Lowest at 5,737.34

RAW MATERIAL COST(Y)

Grown by 10.02% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 452.55 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.88 %

PRE-TAX PROFIT(Q)

Lowest at CNY 550.16 MM

EPS(Q)

Lowest at CNY 1.01

Here's what is working for Huizhou Desay SV Automotive Co., Ltd.

Operating Cash Flow

Highest at CNY 2,918.08 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 22,336.55 MM has Grown at 17.72%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 6,993.61 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -5.7 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Huizhou Desay SV Automotive Co., Ltd.

Interest Coverage Ratio

Lowest at 5,737.34

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 452.55 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.88 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 550.16 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

EPS

Lowest at CNY 1.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 10.02% (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