Why is Jiangxi Huawu Brake Co., Ltd. ?
1
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of 1.30% and Operating profit at -211.14% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 5.80% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 1.30% and Operating profit at -211.14% over the last 5 years
3
With a growth in Net Sales of 24.82%, the company declared Very Positive results in Mar 25
- The company has declared positive results in Jan 70 after 12 consecutive negative quarters
- PRE-TAX PROFIT(Q) At CNY 10.41 MM has Grown at 111.22%
- NET PROFIT(Q) At CNY 9.88 MM has Grown at 113.51%
- INVENTORY TURNOVER RATIO(HY) Highest at 1.69%
4
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 26.20%, its profits have fallen by -2725%
- At the current price, the company has a high dividend yield of 1.4
How much should you hold?
- Overall Portfolio exposure to Jiangxi Huawu Brake Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Jiangxi Huawu Brake Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Jiangxi Huawu Brake Co., Ltd.
49.07%
1.24
64.14%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
1.30%
EBIT Growth (5y)
-211.14%
EBIT to Interest (avg)
0.10
Debt to EBITDA (avg)
1.82
Net Debt to Equity (avg)
0.18
Sales to Capital Employed (avg)
0.43
Tax Ratio
5.77%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.23%
ROE (avg)
5.80%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
1.85
EV to EBIT
-9.33
EV to EBITDA
-11.27
EV to Capital Employed
1.68
EV to Sales
2.75
PEG Ratio
NA
Dividend Yield
1.38%
ROCE (Latest)
-17.97%
ROE (Latest)
-21.63%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Movement
5What is working for the Company
PRE-TAX PROFIT(Q)
At CNY 10.41 MM has Grown at 111.22%
NET PROFIT(Q)
At CNY 9.88 MM has Grown at 113.51%
INVENTORY TURNOVER RATIO(HY)
Highest at 1.69%
-11What is not working for the Company
NET PROFIT(HY)
At CNY -306.87 MM has Grown at -18,078.59%
ROCE(HY)
Lowest at -15.68%
RAW MATERIAL COST(Y)
Grown by 17.87% (YoY
Here's what is working for Jiangxi Huawu Brake Co., Ltd.
Pre-Tax Profit
At CNY 10.41 MM has Grown at 111.22%
over average net sales of the previous four periods of CNY -92.73 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 9.88 MM has Grown at 113.51%
over average net sales of the previous four periods of CNY -73.16 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Inventory Turnover Ratio
Highest at 1.69%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Jiangxi Huawu Brake Co., Ltd.
Raw Material Cost
Grown by 17.87% (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






