Hytera Communications Corp. Ltd. (002583) 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

Hytera Communications Corp. Ltd.

Why is Hytera Communications Corp. Ltd. ?

Poor Management Efficiency with a low ROCE of 1.65%

The company has been able to generate a Return on Capital Employed (avg) of 1.65% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 1.96% and Operating profit at 19.69% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 3.71% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 1.96% and Operating profit at 19.69% over the last 5 years

OPERATING CASH FLOW(Y) Lowest at CNY 120.03 MM
PRE-TAX PROFIT(Q) At CNY -35.44 MM has Fallen at -192.37%
NET PROFIT(Q) At CNY -31.07 MM has Fallen at -217.14%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -26.15%, its profits have risen by 91.3%

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 Telecom - Equipment & Accessories)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hytera Communications Corp. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hytera Communications Corp. Ltd.

-30.42%

3.70

34.95%

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)

1.96%

EBIT Growth (5y)

19.69%

EBIT to Interest (avg)

0.38

Debt to EBITDA (avg)

4.84

Net Debt to Equity (avg)

0.49

Sales to Capital Employed (avg)

1.03

Tax Ratio

10.87%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.65%

ROE (avg)

3.71%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

5.11

EV to EBIT

59.69

EV to EBITDA

21.81

EV to Capital Employed

3.80

EV to Sales

1.89

PEG Ratio

Dividend Yield

ROCE (Latest)

6.36%

ROE (Latest)

-15.29%

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 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

11What is working for the Company

NET PROFIT(HY)

Higher at CNY -474.99 MM

RAW MATERIAL COST(Y)

Fallen by -19.21% (YoY

CASH AND EQV(HY)

Highest at CNY 2,709.06 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.39 times

-16What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 120.03 MM

PRE-TAX PROFIT(Q)

At CNY -35.44 MM has Fallen at -192.37%

NET PROFIT(Q)

At CNY -31.07 MM has Fallen at -217.14%

INTEREST(Q)

At CNY 15.31 MM has Grown at 10.56%

INTEREST COVERAGE RATIO(Q)

Lowest at 170.66

NET SALES(Q)

Lowest at CNY 1,001.58 MM

OPERATING PROFIT(Q)

Lowest at CNY 26.12 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.61 %

Here's what is working for Hytera Communications Corp. Ltd.

Cash and Eqv

Highest at CNY 2,709.06 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 2.39 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -19.21% (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 Hytera Communications Corp. Ltd.

Pre-Tax Profit

At CNY -35.44 MM has Fallen at -192.37%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -31.07 MM has Fallen at -217.14%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 120.03 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

At CNY 15.31 MM has Grown at 10.56%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 170.66

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 1,001.58 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 26.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.61 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales