Jiangxi Welgao Electronics 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

Jiangxi Welgao Electronics Co., Ltd.

Why is Jiangxi Welgao Electronics Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.19%

The company has been able to generate a Return on Capital Employed (avg) of 4.19% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 31.43% and Operating profit at -7.35% over the last 5 years

With a growth in Net Profit of 175.75%, the company declared Very Positive results in Sep 25

RAW MATERIAL COST(Y) Fallen by -41.67% (YoY)
NET SALES(Q) Highest at CNY 407.39 MM
PRE-TAX PROFIT(Q) Highest at CNY 29.49 MM

With ROE of 4.08%, it has a attractive valuation with a 1.20 Price to Book Value

Over the past year, while the stock has generated a return of 54.20%, its profits have fallen by -36%

Market Beating Performance

The stock has generated a return of 54.20% in the last 1 year, much higher than market (China Shanghai Composite) returns of 16.01%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Jiangxi Welgao Electronics 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 Welgao Electronics Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangxi Welgao Electronics Co., Ltd.

54.2%

1.18

66.93%

China Shanghai Composite

16.01%

1.07

14.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

31.43%

EBIT Growth (5y)

-7.35%

EBIT to Interest (avg)

10.63

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.69

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

32.30%

Pledged Shares

Institutional Holding

ROCE (avg)

4.19%

ROE (avg)

4.89%

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

1.20

EV to EBIT

69.51

EV to EBITDA

15.99

EV to Capital Employed

1.22

EV to Sales

1.32

PEG Ratio

Dividend Yield

ROCE (Latest)

1.76%

ROE (Latest)

4.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bearish

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

23What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -41.67% (YoY

NET SALES(Q)

Highest at CNY 407.39 MM

PRE-TAX PROFIT(Q)

Highest at CNY 29.49 MM

NET PROFIT(Q)

Highest at CNY 24.56 MM

EPS(Q)

Highest at CNY 0.18

-16What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -116.95 MM

DEBT-EQUITY RATIO (HY)

Highest at -8.68 %

INTEREST(Q)

Highest at CNY 3.38 MM

Here's what is working for Jiangxi Welgao Electronics Co., Ltd.

Pre-Tax Profit

At CNY 29.49 MM has Grown at 163.19%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 24.56 MM has Grown at 175.63%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 407.39 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 407.39 MM has Grown at 41.33%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 29.49 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 24.56 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.18

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -41.67% (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 Jiangxi Welgao Electronics Co., Ltd.

Interest

At CNY 3.38 MM has Grown at 65.52%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -8.68 % 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

Operating Cash Flow

Lowest at CNY -116.95 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 3.38 MM

in the last five periods and Increased by 65.52% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)