Leader Harmonious Drive Systems Co., Ltd. (688017) 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

Leader Harmonious Drive Systems Co., Ltd.

Why is Leader Harmonious Drive Systems Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 20.72% and Operating profit at -3.76% over the last 5 years

With a growth in Net Profit of 21.36%, the company declared Very Positive results in Sep 25

The company has declared positive results in Jan 70 after 11 consecutive negative quarters
RAW MATERIAL COST(Y) Fallen by -11.93% (YoY)
CASH AND EQV(HY) Highest at CNY 3,887.29 MM
DEBT-EQUITY RATIO (HY) Lowest at -55.04 %

With ROE of 1.81%, it has a very expensive valuation with a 9.10 Price to Book Value

Over the past year, while the stock has generated a return of 37.01%, its profits have fallen by -9.5%
At the current price, the company has a high dividend yield of 0.1

Consistent Returns over the last 3 years

Along with generating 37.01% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Leader Harmonious Drive Systems 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 Leader Harmonious Drive Systems Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Leader Harmonious Drive Systems Co., Ltd.

208.04%

1.70

54.85%

China Shanghai Composite

19.22%

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)

18.61%

EBIT Growth (5y)

5.77%

EBIT to Interest (avg)

51.32

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.45

Sales to Capital Employed (avg)

0.14

Tax Ratio

6.95%

Dividend Payout Ratio

30.33%

Pledged Shares

Institutional Holding

ROCE (avg)

8.36%

ROE (avg)

5.57%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

583

Industry P/E

Price to Book Value

20.25

EV to EBIT

786.15

EV to EBITDA

523.50

EV to Capital Employed

32.88

EV to Sales

115.63

PEG Ratio

3.69

Dividend Yield

0.02%

ROCE (Latest)

4.18%

ROE (Latest)

3.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

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

24What is working for the Company

NET PROFIT(HY)

At CNY 55.13 MM has Grown at 400.25%

NET SALES(HY)

At CNY 304.2 MM has Grown at 45.21%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

OPERATING CASH FLOW(Y)

Highest at CNY 215.14 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.42 times

RAW MATERIAL COST(Y)

Fallen by -8.48% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 2.67 times

-2What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY 16.88 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.05 %

Here's what is working for Leader Harmonious Drive Systems Co., Ltd.

Net Profit

At CNY 55.13 MM has Grown at 400.25%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 304.2 MM has Grown at 45.21%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 1.42 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Cash Flow

Highest at CNY 215.14 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Highest at 2.67 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -8.48% (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 Leader Harmonious Drive Systems Co., Ltd.

Operating Profit

Lowest at CNY 16.88 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 12.05 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales