Why is Mehow Innovative Ltd. ?
1
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
2
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%
3
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
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
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.
44.46%
0.33
56.23%
China Shanghai Composite
22.49%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
5.73%
EBIT Growth (5y)
-3.60%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
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
0
Institutional Holding
0
ROCE (avg)
20.99%
ROE (avg)
10.81%
Valuation Key Factors 
Factor
Value
P/E Ratio
44
Industry P/E
Price to Book Value
3.82
EV to EBIT
43.72
EV to EBITDA
34.30
EV to Capital Employed
6.02
EV to Sales
7.58
PEG Ratio
NA
Dividend Yield
0.08%
ROCE (Latest)
13.78%
ROE (Latest)
8.59%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Movement
5What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 48.25%
RAW MATERIAL COST(Y)
Fallen by -2.74% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 2.73 times
DIVIDEND PER SHARE(HY)
Highest at CNY 4.28
NET SALES(Q)
Highest at CNY 461.66 MM
-11What is not working for the Company
INTEREST(9M)
At CNY 0 MM has Grown at inf%
OPERATING CASH FLOW(Y)
Lowest at CNY 376.99 MM
DEBT-EQUITY RATIO
(HY)
Highest at -41.99 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.28 times
Here's what is working for Mehow Innovative Ltd.
Net Sales
Highest at CNY 461.66 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Inventory Turnover Ratio
Highest at 2.73 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend per share
Highest at CNY 4.28
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (CNY)
Dividend Payout Ratio
Highest at 48.25%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -2.74% (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 Mehow Innovative Ltd.
Interest
At CNY 0 MM has Grown at inf%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Cash Flow
Lowest at CNY 376.99 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Debt-Equity Ratio
Highest at -41.99 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 4.28 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






