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 71.38%, 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.

70.16%

2.14

80.85%

China Shanghai Composite

21.43%

1.73

13.79%

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)

3.25

Debt to EBITDA (avg)

3.04

Net Debt to Equity (avg)

0.59

Sales to Capital Employed (avg)

0.74

Tax Ratio

4.51%

Dividend Payout Ratio

86.36%

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

1.17

EV to EBIT

21.32

EV to EBITDA

10.77

EV to Capital Employed

1.18

EV to Sales

1.39

PEG Ratio

1.44

Dividend Yield

5.15%

ROCE (Latest)

5.56%

ROE (Latest)

4.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

5What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 2.62 times

RAW MATERIAL COST(Y)

Fallen by -7.27% (YoY

CASH AND EQV(HY)

Highest at CNY 593 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.29 times

-8What is not working for the Company

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

OPERATING PROFIT MARGIN(Q)

Lowest at 5.92 %

NET PROFIT(Q)

Lowest at CNY 10 MM

EPS(Q)

Lowest at CNY 0.04

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

Debtors Turnover Ratio

Highest at 2.62 times and Grown

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

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Cash and Eqv

Highest at CNY 593 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.29 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -7.27% (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 72.63 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 200.03 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 11.83 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.92 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 10 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)