Jiangxi Hengda Hi-tech Co., Ltd. (002591) 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

Jiangxi Hengda Hi-tech Co., Ltd.

Why is Jiangxi Hengda Hi-tech Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of 5.50% and Operating profit at 10.08% over the last 5 years

With a growth in Net Profit of 193.49%, the company declared Very Positive results in Mar 26

DEBTORS TURNOVER RATIO(HY) Highest at 2.1 times
NET SALES(Q) Highest at CNY 181.35 MM
OPERATING PROFIT(Q) Highest at CNY 8.56 MM

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 9.64%, its profits have fallen by -327.5%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Jiangxi Hengda Hi-tech 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 Jiangxi Hengda Hi-tech Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangxi Hengda Hi-tech Co., Ltd.

5.15%

1.28

53.98%

China Shanghai Composite

16.78%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.50%

EBIT Growth (5y)

10.08%

EBIT to Interest (avg)

-6.99

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

0.54

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.11%

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

1.91

EV to EBIT

-106.01

EV to EBITDA

144.30

EV to Capital Employed

1.86

EV to Sales

2.63

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.76%

ROE (Latest)

-3.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

OBV

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

23What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 2.1 times

NET SALES(Q)

Highest at CNY 181.35 MM

OPERATING PROFIT(Q)

Highest at CNY 8.56 MM

PRE-TAX PROFIT(Q)

Highest at CNY 7.76 MM

NET PROFIT(Q)

Highest at CNY 6.22 MM

EPS(Q)

Highest at CNY 0.02

-5What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 7.76% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 5.16 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.01 times

Here's what is working for Jiangxi Hengda Hi-tech Co., Ltd.

Net Sales

At CNY 181.35 MM has Grown at 121.1%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 7.76 MM has Grown at 492.95%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 6.22 MM has Grown at 193.49%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 181.35 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 8.56 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 7.76 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 6.22 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 2.1 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 Jiangxi Hengda Hi-tech Co., Ltd.

Debt-Equity Ratio

Highest at 5.16 %

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

Inventory Turnover Ratio

Lowest at 3.01 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 7.76% (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