Meihua Holdings Group Co., Ltd. (600873) 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

Meihua Holdings Group Co., Ltd.

Why is Meihua Holdings Group Co., Ltd. ?

The company has declared positive results in Mar'2025 after 2 consecutive negative quarters

OPERATING CASH FLOW(Y) Highest at CNY 5,321.44 MM
ROCE(HY) Highest at 24.45%
RAW MATERIAL COST(Y) Fallen by 1.27% (YoY)

With ROE of 20.10%, it has a very attractive valuation with a 2.00 Price to Book Value

Over the past year, while the stock has generated a return of 23.85%, its profits have fallen by -8.5%
At the current price, the company has a high dividend yield of 5.9

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Meihua Holdings Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Meihua Holdings Group Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Meihua Holdings Group Co., Ltd.

8.93%

0.30

19.16%

China Shanghai Composite

13.33%

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)

9.42%

EBIT Growth (5y)

23.41%

EBIT to Interest (avg)

27.30

Debt to EBITDA (avg)

0.63

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.30

Tax Ratio

18.18%

Dividend Payout Ratio

64.04%

Pledged Shares

Institutional Holding

ROCE (avg)

21.07%

ROE (avg)

22.30%

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

2.00

EV to EBIT

8.71

EV to EBITDA

6.27

EV to Capital Employed

1.93

EV to Sales

1.26

PEG Ratio

Dividend Yield

5.93%

ROCE (Latest)

22.17%

ROE (Latest)

20.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly 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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 5,321.44 MM

ROCE(HY)

Highest at 24.45%

RAW MATERIAL COST(Y)

Fallen by 1.27% (YoY

CASH AND EQV(HY)

Highest at CNY 10,932.19 MM

DEBT-EQUITY RATIO (HY)

Lowest at -4.81 %

PRE-TAX PROFIT(Q)

Highest at CNY 1,345.09 MM

NET PROFIT(Q)

Highest at CNY 1,248.45 MM

EPS(Q)

Highest at CNY 0.45

-5What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 3,864.7

NET SALES(Q)

Lowest at CNY 5,935 MM

OPERATING PROFIT(Q)

Lowest at CNY 476.07 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.02 %

Here's what is working for Meihua Holdings Group Co., Ltd.

Operating Cash Flow

Highest at CNY 5,321.44 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 1,345.09 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 1,248.45 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 1,248.45 MM has Grown at 65.86%

over average net sales of the previous four periods of CNY 752.71 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.45

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 10,932.19 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -4.81 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 1.27% (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 Meihua Holdings Group Co., Ltd.

Interest Coverage Ratio

Lowest at 3,864.7

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 5,935 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 476.07 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales