Mehow Innovative 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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Mehow Innovative Ltd.

Why is Mehow Innovative Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 7.25% and Operating profit at 12.40% over the last 5 years

Flat results in Jun 25

DEBT-EQUITY RATIO (HY) Highest at -43.7 %
PRE-TAX PROFIT(Q) At CNY 72.42 MM has Fallen at -43.4%
NET PROFIT(Q) At CNY 63.41 MM has Fallen at -42.8%

With ROE of 8.59%, it has a attractive valuation with a 0.76 Price to Book Value

Over the past year, while the stock has generated a return of -8.98%, its profits have risen by 28.1%
At the current price, the company has a high dividend yield of 0.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -8.98% returns in the last 1 year, the stock has also underperformed 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 Mehow Innovative Ltd. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Mehow Innovative Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Mehow Innovative Ltd.

-11.4%

0.33

56.23%

China Shanghai Composite

14.03%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.25%

EBIT Growth (5y)

12.40%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.48

Sales to Capital Employed (avg)

0.43

Tax Ratio

10.38%

Dividend Payout Ratio

7.95%

Pledged Shares

Institutional Holding

ROCE (avg)

20.99%

ROE (avg)

10.81%

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

0.76

EV to EBIT

4.20

EV to EBITDA

3.30

EV to Capital Employed

0.58

EV to Sales

0.73

PEG Ratio

Dividend Yield

0.41%

ROCE (Latest)

13.78%

ROE (Latest)

8.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 395.04 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.84%

-9What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -43.7 %

PRE-TAX PROFIT(Q)

At CNY 72.42 MM has Fallen at -43.4%

NET PROFIT(Q)

At CNY 63.41 MM has Fallen at -42.8%

RAW MATERIAL COST(Y)

Grown by 16.31% (YoY

Here's what is working for Mehow Innovative Ltd.

Operating Cash Flow

Highest at CNY 395.04 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 2.84%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at CNY 25.94 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CNY MM)

Depreciation

At CNY 25.94 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (CNY MM)

Here's what is not working for Mehow Innovative Ltd.

Pre-Tax Profit

At CNY 72.42 MM has Fallen at -43.4%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 63.41 MM has Fallen at -42.8%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at -43.7 % 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

Raw Material Cost

Grown by 16.31% (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