Ningbo Haitian Precision Machinery Co., Ltd. (601882) 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

Ningbo Haitian Precision Machinery Co., Ltd.

Why is Ningbo Haitian Precision Machinery Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 27.25%

The company has been able to generate a Return on Capital Employed (avg) of 27.25% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 12.61% and Operating profit at 15.46% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 20.90% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 12.61% and Operating profit at 15.46% over the last 5 years

Flat results in Jun 26

INTEREST(HY) At CNY 1.31 MM has Grown at 21.21%
DEBT-EQUITY RATIO (HY) Highest at -22.29 %
DEBTORS TURNOVER RATIO(HY) Lowest at 2.69 times

With ROE of 14.38%, it has a fair valuation with a 3.15 Price to Book Value

Over the past year, while the stock has generated a return of 11.21%, its profits have fallen by -10.4%
At the current price, the company has a high dividend yield of 1.6

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ningbo Haitian Precision Machinery Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Ningbo Haitian Precision Machinery Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ningbo Haitian Precision Machinery Co., Ltd.

11.32%

-0.05

37.73%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.61%

EBIT Growth (5y)

15.46%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

1.09

Tax Ratio

9.76%

Dividend Payout Ratio

36.51%

Pledged Shares

Institutional Holding

ROCE (avg)

26.88%

ROE (avg)

20.90%

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

3.15

EV to EBIT

24.28

EV to EBITDA

20.73

EV to Capital Employed

3.63

EV to Sales

2.64

PEG Ratio

Dividend Yield

1.63%

ROCE (Latest)

14.96%

ROE (Latest)

14.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

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

16What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 1.83 times

RAW MATERIAL COST(Y)

Fallen by 1.52% (YoY

CASH AND EQV(HY)

Highest at CNY 2,221.96 MM

NET SALES(Q)

Highest at CNY 1,190.17 MM

OPERATING PROFIT(Q)

Highest at CNY 188.85 MM

OPERATING PROFIT MARGIN(Q)

Highest at 15.87 %

PRE-TAX PROFIT(Q)

Highest at CNY 198.41 MM

NET PROFIT(Q)

Highest at CNY 171.65 MM

EPS(Q)

Highest at CNY 0.33

-11What is not working for the Company

INTEREST(HY)

At CNY 1.31 MM has Grown at 21.21%

DEBT-EQUITY RATIO (HY)

Highest at -22.29 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.69 times

Here's what is working for Ningbo Haitian Precision Machinery Co., Ltd.

Net Sales

At CNY 1,190.17 MM has Grown at 38.27%

over average net sales of the previous four periods of CNY 860.75 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 1.83 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

Highest at CNY 1,190.17 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 188.85 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 15.87 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 198.41 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 198.41 MM has Grown at 62.97%

over average net sales of the previous four periods of CNY 121.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 171.65 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 171.65 MM has Grown at 56.35%

over average net sales of the previous four periods of CNY 109.78 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.33

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 2,221.96 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 1.52% (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 Ningbo Haitian Precision Machinery Co., Ltd.

Interest

At CNY 1.31 MM has Grown at 21.21%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -22.29 %

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

Debtors Turnover Ratio

Lowest at 2.69 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio