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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

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

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Meihua Holdings Group Co., Ltd.

-25.32%

0.30

19.16%

China Shanghai Composite

23.91%

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)

5.48%

EBIT Growth (5y)

10.20%

EBIT to Interest (avg)

27.30

Debt to EBITDA (avg)

0.63

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.24

Tax Ratio

18.18%

Dividend Payout Ratio

36.57%

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

1.71

EV to EBIT

17.95

EV to EBITDA

10.87

EV to Capital Employed

1.62

EV to Sales

1.26

PEG Ratio

Dividend Yield

ROCE (Latest)

9.03%

ROE (Latest)

14.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly 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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-30What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,106.06

OPERATING CASH FLOW(Y)

Lowest at CNY 2,497.71 MM

ROCE(HY)

Lowest at 14.94%

OPERATING PROFIT(Q)

Lowest at CNY 130.82 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.19 %

RAW MATERIAL COST(Y)

Grown by 62.99% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 13.38 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.33 times

PRE-TAX PROFIT(Q)

Lowest at CNY 151.06 MM

NET PROFIT(Q)

Lowest at CNY 114.92 MM

EPS(Q)

Lowest at CNY 0.04

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

Interest Coverage Ratio

Lowest at 1,106.06 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 151.06 MM has Fallen at -83.67%

over average net sales of the previous four periods of CNY 924.74 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 114.92 MM has Fallen at -85.86%

over average net sales of the previous four periods of CNY 813 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 130.82 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.19 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Cash Flow

Lowest at CNY 2,497.71 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Lowest at CNY 151.06 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 114.92 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 13.38 %

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

Inventory Turnover Ratio

Lowest at 5.33 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 62.99% (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