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

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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 2,487.06 MM
NET PROFIT(HY) At CNY 1,233.63 MM has Grown at 50.51%
ROCE(HY) Highest at 26.54%

With ROE of 25.68%, it has a expensive valuation with a 7.93 Price to Book Value

Over the past year, while the stock has generated a return of -11.53%, 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 0.9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.53% 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, Medium Return

Absolute

Risk Adjusted

Volatility

Huizhou Desay SV Automotive Co., Ltd.

-7.57%

0.44

41.65%

China Shanghai Composite

15.19%

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)

40.13%

EBIT Growth (5y)

63.78%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.85

Net Debt to Equity (avg)

0.32

Sales to Capital Employed (avg)

1.90

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

7.93

EV to EBIT

39.26

EV to EBITDA

29.22

EV to Capital Employed

5.90

EV to Sales

2.64

PEG Ratio

0.78

Dividend Yield

0.86%

ROCE (Latest)

15.03%

ROE (Latest)

25.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,487.06 MM

NET PROFIT(HY)

At CNY 1,233.63 MM has Grown at 50.51%

ROCE(HY)

Highest at 26.54%

INVENTORY TURNOVER RATIO(HY)

Highest at 6.56%

NET SALES(Q)

At CNY 7,831.97 MM has Grown at 30.01%

OPERATING PROFIT(Q)

Highest at CNY 765.67 MM

EPS(Q)

Highest at CNY 1.16

-3What is not working for the Company

INTEREST(Q)

At CNY 8.1 MM has Grown at 25.34%

DEBT-EQUITY RATIO (HY)

Highest at 42.23 %

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

Operating Cash Flow

Highest at CNY 2,487.06 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 Profit

At CNY 1,233.63 MM has Grown at 50.51%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 6.56% and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

At CNY 7,831.97 MM has Grown at 30.01%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 765.67 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

EPS

Highest at CNY 1.16

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

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

Interest

At CNY 8.1 MM has Grown at 25.34%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 42.23 %

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