Hunan Zhongke Electric Co. Ltd. (300035) 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

Hunan Zhongke Electric Co. Ltd.

Why is Hunan Zhongke Electric Co. Ltd. ?

The company has declared Positive results for the last 5 consecutive quarters

NET PROFIT(HY) At CNY 264.4 MM has Grown at 63.1%
ROCE(HY) Highest at 11.02%
INVENTORY TURNOVER RATIO(HY) Highest at 2.05 times

With ROE of 13.28%, it has a attractive valuation with a 3.19 Price to Book Value

Over the past year, while the stock has generated a return of 30.42%, its profits have risen by 109.9% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0.9

Market Beating performance in long term as well as near term

Along with generating 30.42% returns in the last 1 year, the stock has outperformed 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 Hunan Zhongke Electric 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 Hunan Zhongke Electric Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hunan Zhongke Electric Co. Ltd.

32.17%

2.99

50.59%

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)

51.76%

EBIT Growth (5y)

39.07%

EBIT to Interest (avg)

6.41

Debt to EBITDA (avg)

3.35

Net Debt to Equity (avg)

0.64

Sales to Capital Employed (avg)

0.71

Tax Ratio

13.77%

Dividend Payout Ratio

56.92%

Pledged Shares

Institutional Holding

ROCE (avg)

6.96%

ROE (avg)

7.44%

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

3.19

EV to EBIT

24.81

EV to EBITDA

16.91

EV to Capital Employed

2.30

EV to Sales

2.68

PEG Ratio

0.22

Dividend Yield

0.88%

ROCE (Latest)

9.28%

ROE (Latest)

13.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

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

20What is working for the Company

NET PROFIT(HY)

At CNY 264.4 MM has Grown at 63.1%

ROCE(HY)

Highest at 11.02%

INVENTORY TURNOVER RATIO(HY)

Highest at 2.05 times

NET SALES(Q)

Highest at CNY 2,291.31 MM

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -1,015.43 MM

DEBT-EQUITY RATIO (HY)

Highest at 82.17 %

INTEREST COVERAGE RATIO(Q)

Lowest at 424.58

RAW MATERIAL COST(Y)

Grown by 30.74% (YoY

INTEREST(Q)

Highest at CNY 41.92 MM

OPERATING PROFIT(Q)

Lowest at CNY 178 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.77 %

PRE-TAX PROFIT(Q)

Lowest at CNY 151.24 MM

Here's what is working for Hunan Zhongke Electric Co. Ltd.

Net Sales

At CNY 2,291.31 MM has Grown at 32.25%

over average net sales of the previous four periods of CNY 1,732.55 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Profit

At CNY 264.4 MM has Grown at 63.1%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 2.05 times 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

Highest at CNY 2,291.31 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Hunan Zhongke Electric Co. Ltd.

Interest Coverage Ratio

Lowest at 424.58

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 82.17 % and Grown

In each half year 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

Operating Cash Flow

Lowest at CNY -1,015.43 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 41.92 MM

in the last five periods and Increased by 5.72% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 178 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.77 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 151.24 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Raw Material Cost

Grown by 30.74% (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