Jiangsu Huachen Transformer Co., Ltd. () 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

Jiangsu Huachen Transformer Co., Ltd.

Why is Jiangsu Huachen Transformer Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 27.36% and Operating profit at 7.82% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

DEBT-EQUITY RATIO (HY) Highest at 68.94 %
INTEREST COVERAGE RATIO(Q) Lowest at 640.37
RAW MATERIAL COST(Y) Grown by 12.45% (YoY)

With ROE of 8.86%, it has a fair valuation with a 0.81 Price to Book Value

Over the past year, while the stock has generated a return of 55.15%, its profits have fallen by -27.1%

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 Jiangsu Huachen Transformer Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Jiangsu Huachen Transformer Co., Ltd.

45.61%

0.71

40.84%

China Shanghai Composite

16.01%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

27.36%

EBIT Growth (5y)

7.82%

EBIT to Interest (avg)

16.99

Debt to EBITDA (avg)

1.97

Net Debt to Equity (avg)

0.50

Sales to Capital Employed (avg)

1.02

Tax Ratio

8.67%

Dividend Payout Ratio

34.93%

Pledged Shares

Institutional Holding

ROCE (avg)

9.43%

ROE (avg)

12.32%

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

0.81

EV to EBIT

16.69

EV to EBITDA

12.01

EV to Capital Employed

0.88

EV to Sales

0.87

PEG Ratio

Dividend Yield

ROCE (Latest)

5.30%

ROE (Latest)

8.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 117.07 MM

NET SALES(Q)

At CNY 505.05 MM has Grown at 32.2%

-9What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 68.94 %

INTEREST COVERAGE RATIO(Q)

Lowest at 640.37

RAW MATERIAL COST(Y)

Grown by 12.45% (YoY

INTEREST(Q)

Highest at CNY 4.39 MM

OPERATING PROFIT(Q)

Lowest at CNY 28.12 MM

Here's what is working for Jiangsu Huachen Transformer Co., Ltd.

Operating Cash Flow

Highest at CNY 117.07 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 505.05 MM has Grown at 32.2%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Jiangsu Huachen Transformer Co., Ltd.

Interest

At CNY 4.39 MM has Grown at 298.39%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 640.37

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 68.94 % 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

Interest

Highest at CNY 4.39 MM

in the last five periods and Increased by 298.39% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 28.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Raw Material Cost

Grown by 12.45% (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