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

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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 SALES(HY) At CNY 3,272.46 MM has Grown at 34.43%
NET PROFIT(HY) At CNY 242.43 MM has Grown at 75.01%
ROCE(HY) Highest at 8.89%

With ROE of 13.28%, it has a attractive valuation with a 2.58 Price to Book Value

Over the past year, while the stock has generated a return of 52.94%, 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 1.1

Market Beating Performance

The stock has generated a return of 52.94% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

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.

32.42%

3.51

52.43%

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)

50.80%

EBIT Growth (5y)

39.50%

EBIT to Interest (avg)

6.41

Debt to EBITDA (avg)

3.35

Net Debt to Equity (avg)

0.64

Sales to Capital Employed (avg)

0.69

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

2.58

EV to EBIT

20.90

EV to EBITDA

14.25

EV to Capital Employed

1.94

EV to Sales

2.26

PEG Ratio

0.18

Dividend Yield

1.08%

ROCE (Latest)

9.28%

ROE (Latest)

13.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

15What is working for the Company

NET SALES(HY)

At CNY 3,272.46 MM has Grown at 34.43%

NET PROFIT(HY)

At CNY 242.43 MM has Grown at 75.01%

ROCE(HY)

Highest at 8.89%

PRE-TAX PROFIT(Q)

Highest at CNY 164.61 MM

RAW MATERIAL COST(Y)

Fallen by -39.92% (YoY

EPS(Q)

Highest at CNY 0.2

-6What is not working for the Company

INTEREST(Q)

At CNY 38.9 MM has Grown at 14.63%

DEBT-EQUITY RATIO (HY)

Highest at 64.37 %

OPERATING PROFIT MARGIN(Q)

Lowest at 11.39 %

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

Pre-Tax Profit

Highest at CNY 164.61 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 3,272.46 MM has Grown at 34.43%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY 242.43 MM has Grown at 75.01%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.2

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -39.92% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

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

Interest

At CNY 38.9 MM has Grown at 14.63%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 38.9 MM

in the last five periods and Increased by 14.63% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 11.39 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 64.37 %

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