Jinlihua Electric Co., Ltd. (300069) 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

Jinlihua Electric Co., Ltd.

Why is Jinlihua Electric Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.91%

The company has been able to generate a Return on Capital Employed (avg) of 1.91% 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 6.68% and Operating profit at 13.02% over the last 5 years

With a fall in Net Sales of -38.37%, the company declared Very Negative results in Sep 25

The company has declared negative results in Jan 70 after 8 consecutive negative quarters
NET SALES(Q) At CNY 47.73 MM has Fallen at -38.37%
PRE-TAX PROFIT(Q) At CNY 0.97 MM has Fallen at -90.1%
NET PROFIT(Q) At CNY 1.02 MM has Fallen at -90.23%

With ROE of 9.99%, it has a very expensive valuation with a 7.89 Price to Book Value

Over the past year, while the stock has generated a return of 30.80%, its profits have risen by 98.9% ; the PEG ratio of the company is 0.8

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 Jinlihua Electric Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jinlihua Electric Co., Ltd.

17.48%

1.57

70.27%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.68%

EBIT Growth (5y)

13.02%

EBIT to Interest (avg)

-2.66

Debt to EBITDA (avg)

0.54

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

0.60

Tax Ratio

4.55%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.91%

ROE (avg)

3.16%

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

7.89

EV to EBIT

73.54

EV to EBITDA

42.54

EV to Capital Employed

5.87

EV to Sales

8.40

PEG Ratio

0.80

Dividend Yield

ROCE (Latest)

7.99%

ROE (Latest)

9.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

Mildly 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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -16.06% (YoY

-44What is not working for the Company

NET SALES(Q)

At CNY 47.73 MM has Fallen at -38.37%

PRE-TAX PROFIT(Q)

At CNY 0.97 MM has Fallen at -90.1%

NET PROFIT(Q)

At CNY 1.02 MM has Fallen at -90.23%

DEBT-EQUITY RATIO (HY)

Highest at 57.85 %

INTEREST COVERAGE RATIO(Q)

Lowest at 66.4

CASH AND EQV(HY)

Lowest at CNY 122.14 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.8 times

INTEREST(Q)

Highest at CNY 1.64 MM

OPERATING PROFIT(Q)

Lowest at CNY 1.09 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.28 %

Here's what is working for Jinlihua Electric Co., Ltd.

Raw Material Cost

Fallen by -16.06% (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 Jinlihua Electric Co., Ltd.

Net Sales

At CNY 47.73 MM has Fallen at -38.37%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 0.97 MM has Fallen at -90.1%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 1.02 MM has Fallen at -90.23%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 1.64 MM has Grown at 24.8%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 66.4

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 57.85 % 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 1.64 MM

in the last five periods and Increased by 24.8% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 1.09 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.28 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 122.14 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 1.8 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio