Kunshan Huguang Auto Harness Co., Ltd. (605333) 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

Kunshan Huguang Auto Harness Co., Ltd.

Why is Kunshan Huguang Auto Harness Co., Ltd. ?

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 39.08% and Operating profit at 74.03% 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 9.95% signifying low profitability per unit of shareholders funds

The company has declared Positive results for the last 6 consecutive quarters

DEBT-EQUITY RATIO (HY) Lowest at 39.81 %
CASH AND EQV(HY) Highest at CNY 2,497.14 MM

With ROE of 28.82%, it has a fair valuation with a 6.72 Price to Book Value

Over the past year, while the stock has generated a return of -16.75%, its profits have risen by 97.6% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0.6

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -16.75% returns

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 Auto Components & Equipments)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Kunshan Huguang Auto Harness Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kunshan Huguang Auto Harness Co., Ltd.

-31.95%

-0.02

43.32%

China Shanghai Composite

21.43%

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)

38.07%

EBIT Growth (5y)

47.20%

EBIT to Interest (avg)

3.72

Debt to EBITDA (avg)

8.83

Net Debt to Equity (avg)

0.98

Sales to Capital Employed (avg)

1.33

Tax Ratio

8.66%

Dividend Payout Ratio

18.35%

Pledged Shares

Institutional Holding

ROCE (avg)

4.97%

ROE (avg)

9.95%

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

2.59

EV to EBIT

22.92

EV to EBITDA

16.01

EV to Capital Employed

2.08

EV to Sales

1.24

PEG Ratio

Dividend Yield

1.12%

ROCE (Latest)

9.05%

ROE (Latest)

12.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

2What is working for the Company

CASH AND EQV(HY)

Highest at CNY 2,899.88 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 10.01 times

-26What is not working for the Company

INTEREST(HY)

At CNY 29.49 MM has Grown at 35.62%

INTEREST COVERAGE RATIO(Q)

Lowest at 316.37

RAW MATERIAL COST(Y)

Grown by 11.37% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 45.7 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.81 %

PRE-TAX PROFIT(Q)

Lowest at CNY 38.29 MM

NET PROFIT(Q)

Lowest at CNY 29.89 MM

EPS(Q)

Lowest at CNY 0.07

Here's what is working for Kunshan Huguang Auto Harness Co., Ltd.

Cash and Eqv

Highest at CNY 2,899.88 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 10.01 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Kunshan Huguang Auto Harness Co., Ltd.

Interest

At CNY 29.49 MM has Grown at 35.62%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 38.29 MM has Fallen at -63.02%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 29.89 MM has Fallen at -67.9%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 316.37

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 45.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.81 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 38.29 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 29.89 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.07

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 11.37% (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