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. ?

Negative results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY -1,636.76 MM
DEBT-EQUITY RATIO (HY) Highest at 120.34 %
INTEREST COVERAGE RATIO(Q) Lowest at 344.46

Underperformed the market in the last 1 year

The stock has generated a return of 6.23% in the last 1 year, much lower than market (China Shanghai Composite) returns of 21.43%

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 Hunan Zhongke Electric Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hunan Zhongke Electric Co. Ltd.

-4.63%

1.55

50.70%

China Shanghai Composite

21.43%

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)

51.83%

EBIT Growth (5y)

24.75%

EBIT to Interest (avg)

6.41

Debt to EBITDA (avg)

3.35

Net Debt to Equity (avg)

0.64

Sales to Capital Employed (avg)

0.73

Tax Ratio

13.77%

Dividend Payout Ratio

36.46%

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

1.74

EV to EBIT

23.96

EV to EBITDA

16.65

EV to Capital Employed

1.34

EV to Sales

1.62

PEG Ratio

Dividend Yield

1.52%

ROCE (Latest)

5.57%

ROE (Latest)

10.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Bullish

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

10What is working for the Company

NET SALES(HY)

At CNY 4,835.08 MM has Grown at 46.73%

INVENTORY TURNOVER RATIO(HY)

Highest at 2.24 times

DEBTORS TURNOVER RATIO(HY)

Highest at 2.47 times

-23What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -1,636.76 MM

DEBT-EQUITY RATIO (HY)

Highest at 120.34 %

INTEREST COVERAGE RATIO(Q)

Lowest at 344.46

OPERATING PROFIT MARGIN(Q)

Lowest at 4.85 %

RAW MATERIAL COST(Y)

Grown by 49.28% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 110.07 MM

PRE-TAX PROFIT(Q)

Lowest at CNY 81.03 MM

NET PROFIT(Q)

Lowest at CNY 61.91 MM

EPS(Q)

Lowest at CNY 0.09

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

Net Sales

At CNY 4,835.08 MM has Grown at 46.73%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 2.24 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

Debtors Turnover Ratio

Highest at 2.47 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Operating Cash Flow

Lowest at CNY -1,636.76 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest Coverage Ratio

Lowest at 344.46

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 4.85 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY 81.03 MM has Fallen at -47.54%

over average net sales of the previous four periods of CNY 154.46 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 61.91 MM has Fallen at -45.86%

over average net sales of the previous four periods of CNY 114.34 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 120.34 % 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 Profit

Lowest at CNY 110.07 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY 81.03 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 61.91 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 49.28% (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