Meihua Holdings Group Co., Ltd.

  • Market Cap: Large Cap
  • Industry: FMCG
  • ISIN: CNE000000HP9
  • SHG: 600873
CNY
7.51
-0.03 (-0.4%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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. ?

1
Poor Management Efficiency with a low ROCE of 21.07%
  • The company has been able to generate a Return on Capital Employed (avg) of 21.07% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of 5.48% and Operating profit at 10.20% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 22.30% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 5.48% and Operating profit at 10.20% over the last 5 years
4
The company has declared Negative results for the last 3 consecutive quarters
  • NET PROFIT(HY) At CNY 644.84 MM has Grown at -63.24%
  • OPERATING CASH FLOW(Y) Lowest at CNY 2,187.94 MM
  • ROCE(HY) Lowest at 14.19%
5
With ROE of 14.35%, it has a fair valuation with a 1.26 Price to Book Value
  • Over the past year, while the stock has generated a return of -29.53%, its profits have fallen by -21.1%
  • At the current price, the company has a high dividend yield of 0
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Meihua Holdings Group Co., Ltd. should be less than 10%
  2. 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?

Medium Risk, Low Return

Absolute
Risk Adjusted
Volatility
Meihua Holdings Group Co., Ltd.
-29.15%
-0.99
29.82%
China Shanghai Composite
3.23%
0.23
14.72%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
5.48%
EBIT Growth (5y)
10.20%
EBIT to Interest (avg)
34.89
Debt to EBITDA (avg)
0.20
Net Debt to Equity (avg)
0.02
Sales to Capital Employed (avg)
1.21
Tax Ratio
11.97%
Dividend Payout Ratio
36.62%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
22.27%
ROE (avg)
22.30%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
1.26
EV to EBIT
13.58
EV to EBITDA
8.22
EV to Capital Employed
1.23
EV to Sales
0.95
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
9.03%
ROE (Latest)
14.35%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company
INTEREST COVERAGE RATIO(Q)

Highest at 10,171.93

NET SALES(Q)

Highest at CNY 6,249.46 MM

-16What is not working for the Company
NET PROFIT(HY)

At CNY 644.84 MM has Grown at -63.24%

OPERATING CASH FLOW(Y)

Lowest at CNY 2,187.94 MM

ROCE(HY)

Lowest at 14.19%

RAW MATERIAL COST(Y)

Grown by 27.97% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.45 times

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

Interest Coverage Ratio
Highest at 10,171.93
in the last five periods
MOJO Watch
The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales
Highest at CNY 6,249.46 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Meihua Holdings Group Co., Ltd.

Net Profit
At CNY 644.84 MM has Grown at -63.24%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow
Lowest at CNY 2,187.94 MM and Fallen
In each year in the last three years
MOJO Watch
The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio
Lowest at 6.45 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost
Grown by 27.97% (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