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. ?

ROCE(HY) Lowest at 18.38%
OPERATING PROFIT MARGIN(Q) Lowest at 7.49 %
DEBTORS TURNOVER RATIO(HY) Lowest at 2.78 times

With ROE of 16.10%, it has a fair valuation with a 3.44 Price to Book Value

Over the past year, while the stock has generated a return of -13.76%, its profits have risen by 8.5% ; the PEG ratio of the company is 2.9
At the current price, the company has a high dividend yield of 1.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -13.76% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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.

-17.71%

-0.38

40.67%

China Shanghai Composite

20.18%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

33.19%

EBIT Growth (5y)

29.44%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.85

Net Debt to Equity (avg)

0.32

Sales to Capital Employed (avg)

1.87

Tax Ratio

4.49%

Dividend Payout Ratio

28.74%

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

3.44

EV to EBIT

24.42

EV to EBITDA

19.04

EV to Capital Employed

3.61

EV to Sales

1.59

PEG Ratio

2.85

Dividend Yield

1.32%

ROCE (Latest)

14.78%

ROE (Latest)

16.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 3,398.05 MM

DEBT-EQUITY RATIO (HY)

Lowest at -5.83 %

CASH AND EQV(HY)

Highest at CNY 10,833.45 MM

-11What is not working for the Company

ROCE(HY)

Lowest at 18.38%

OPERATING PROFIT MARGIN(Q)

Lowest at 7.49 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.78 times

NET SALES(Q)

Lowest at CNY 6,495.18 MM

OPERATING PROFIT(Q)

Lowest at CNY 486.77 MM

NET PROFIT(Q)

Lowest at CNY 504.83 MM

EPS(Q)

Lowest at CNY 0.77

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

Operating Cash Flow

Highest at CNY 3,398.05 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)

Debt-Equity Ratio

Lowest at -5.83 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Cash and Eqv

Highest at CNY 10,833.45 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

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

Operating Profit Margin

Lowest at 7.49 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Sales

Lowest at CNY 6,495.18 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 486.77 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Net Profit

Lowest at CNY 504.83 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.77

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 2.78 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at CNY 0.25 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income