Nanhua Instruments Co., Ltd. (300417) 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

Nanhua Instruments Co., Ltd.

Why is Nanhua Instruments Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.98%

The company has been able to generate a Return on Capital Employed (avg) of 2.98% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -6.33% and Operating profit at -167.90% over the last 5 years

Flat results in Mar 26

INTEREST(HY) At CNY 0.17 MM has Grown at 29.18%
PRE-TAX PROFIT(Q) At CNY -4.04 MM has Fallen at -657.57%
NET PROFIT(Q) At CNY -3.23 MM has Fallen at -678.03%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -15.97%, its profits have fallen by -96.9%
At the current price, the company has a high dividend yield of 1

Below par performance in long term as well as near term

Along with generating -15.97% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nanhua Instruments Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Nanhua Instruments Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nanhua Instruments Co., Ltd.

-6.07%

1.14

36.62%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.33%

EBIT Growth (5y)

-167.90%

EBIT to Interest (avg)

-13.34

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.44

Sales to Capital Employed (avg)

0.30

Tax Ratio

13.80%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

3.26%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

1369

Industry P/E

Price to Book Value

3.02

EV to EBIT

-173.11

EV to EBITDA

447.70

EV to Capital Employed

4.17

EV to Sales

5.26

PEG Ratio

Dividend Yield

0.69%

ROCE (Latest)

-2.41%

ROE (Latest)

0.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly 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

33What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 1.84 times

NET SALES(Q)

At CNY 71.62 MM has Grown at 25.2%

OPERATING PROFIT(Q)

Highest at CNY 8.01 MM

OPERATING PROFIT MARGIN(Q)

Highest at 11.19 %

PRE-TAX PROFIT(Q)

Highest at CNY 4.09 MM

NET PROFIT(Q)

Highest at CNY 4.29 MM

EPS(Q)

Highest at CNY 0.03

-7What is not working for the Company

INTEREST(9M)

At CNY 0.23 MM has Grown at 11.83%

DEBT-EQUITY RATIO (HY)

Highest at -40.67 %

RAW MATERIAL COST(Y)

Grown by 12.98% (YoY

Here's what is working for Nanhua Instruments Co., Ltd.

Pre-Tax Profit

At CNY 4.09 MM has Grown at 4,465.38%

over average net sales of the previous four periods of CNY -0.09 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 4.29 MM has Grown at 2,197.8%

over average net sales of the previous four periods of CNY -0.2 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 1.84 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

At CNY 71.62 MM has Grown at 25.2%

over average net sales of the previous four periods of CNY 57.2 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 8.01 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 11.19 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 4.09 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 4.29 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Nanhua Instruments Co., Ltd.

Debt-Equity Ratio

Highest at -40.67 % 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

Interest

At CNY 0.23 MM has Grown at 11.83%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 12.98% (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