Ningbo Henghe Precision Industry Co., Ltd. (300539) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ningbo Henghe Precision Industry Co., Ltd.

Why is Ningbo Henghe Precision Industry Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.89%

The company has been able to generate a Return on Capital Employed (avg) of 4.89% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 10.24% and Operating profit at 27.63% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 5.50% signifying low profitability per unit of shareholders funds

Flat results in Mar 25

INTEREST(HY) At CNY 7.98 MM has Grown at 56.7%
INTEREST COVERAGE RATIO(Q) Lowest at 413.66
CASH AND EQV(HY) Lowest at CNY 114.86 MM

With ROE of 9.13%, it has a expensive valuation with a 5.27 Price to Book Value

Over the past year, while the stock has generated a return of 218.02%, its profits have risen by 90.3% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 1

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 Industrial Manufacturing)

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

Is Ningbo Henghe Precision Industry Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ningbo Henghe Precision Industry Co., Ltd.

231.92%

5.23

86.11%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.24%

EBIT Growth (5y)

27.63%

EBIT to Interest (avg)

3.25

Debt to EBITDA (avg)

3.04

Net Debt to Equity (avg)

0.59

Sales to Capital Employed (avg)

0.77

Tax Ratio

4.51%

Dividend Payout Ratio

78.90%

Pledged Shares

Institutional Holding

ROCE (avg)

4.89%

ROE (avg)

5.50%

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

5.27

EV to EBIT

52.94

EV to EBITDA

23.84

EV to Capital Employed

3.47

EV to Sales

3.96

PEG Ratio

0.64

Dividend Yield

1.00%

ROCE (Latest)

6.56%

ROE (Latest)

9.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 91.24 MM

NET PROFIT(HY)

At CNY 24.93 MM has Grown at 83.69%

ROCE(HY)

Highest at 7.28%

RAW MATERIAL COST(Y)

Fallen by -11.26% (YoY

NET SALES(Q)

At CNY 201.28 MM has Grown at 22.1%

-13What is not working for the Company

INTEREST(HY)

At CNY 7.98 MM has Grown at 56.7%

INTEREST COVERAGE RATIO(Q)

Lowest at 413.66

CASH AND EQV(HY)

Lowest at CNY 114.86 MM

DEBT-EQUITY RATIO (HY)

Highest at 59.39 %

OPERATING PROFIT(Q)

Lowest at CNY 12.34 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.13 %

Here's what is working for Ningbo Henghe Precision Industry Co., Ltd.

Operating Cash Flow

Highest at CNY 91.24 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

At CNY 24.93 MM has Grown at 83.69%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Sales

At CNY 201.28 MM has Grown at 22.1%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -11.26% (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 Henghe Precision Industry Co., Ltd.

Interest

At CNY 7.98 MM has Grown at 56.7%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 413.66

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 12.34 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.13 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 114.86 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 59.39 %

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