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

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)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 8.09% and Operating profit at 10.65% over the last 5 years
The company is Net-Debt Free
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 26

OPERATING CASH FLOW(Y) Lowest at CNY 72.63 MM
NET SALES(Q) Lowest at CNY 200.03 MM
OPERATING PROFIT(Q) Lowest at CNY 11.83 MM

With ROE of 4.26%, it has a very expensive valuation with a 1.17 Price to Book Value

Over the past year, while the stock has generated a return of 86.76%, its profits have risen by 19.2% ; the PEG ratio of the company is 1.4
At the current price, the company has a high dividend yield of 5.2

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.

-63.7%

2.58

83.65%

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)

8.09%

EBIT Growth (5y)

10.65%

EBIT to Interest (avg)

4.31

Debt to EBITDA (avg)

2.33

Net Debt to Equity (avg)

0.59

Sales to Capital Employed (avg)

0.74

Tax Ratio

12.04%

Dividend Payout Ratio

86.36%

Pledged Shares

Institutional Holding

ROCE (avg)

5.04%

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

106

Industry P/E

Price to Book Value

4.52

EV to EBIT

85.18

EV to EBITDA

43.02

EV to Capital Employed

4.73

EV to Sales

5.53

PEG Ratio

5.53

Dividend Yield

0.78%

ROCE (Latest)

5.56%

ROE (Latest)

4.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.36% (YoY

CASH AND EQV(HY)

Highest at CNY 568.97 MM

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 72.9 MM

ROCE(HY)

Lowest at 5.34%

INTEREST(Q)

At CNY 1.16 MM has Grown at 13.19%

PRE-TAX PROFIT(Q)

At CNY 10.31 MM has Fallen at -43.12%

OPERATING PROFIT(Q)

Lowest at CNY 30.01 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.43 %

NET PROFIT(Q)

Fallen at -35.89%

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

Cash and Eqv

Highest at CNY 568.97 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.36% (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.

Operating Cash Flow

Lowest at CNY 72.9 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)

Interest

At CNY 1.16 MM has Grown at 13.19%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 10.31 MM has Fallen at -43.12%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Profit

Lowest at CNY 30.01 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 12.43 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Fallen at -35.89%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)