ScoreWhy is Ningbo Henghe Precision Industry Co., Ltd. ?
1
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)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 9.98% and Operating profit at 18.44% 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
3
With ROE of 9.13%, it has a expensive valuation with a 22.43 Price to Book Value
- Over the past year, while the stock has generated a return of 108.30%, its profits have risen by 90.3% ; the PEG ratio of the company is 2.7
- At the current price, the company has a high dividend yield of 0.2
Real-Time Research ReportHow 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.
112.27%
3.54
78.98%
China Shanghai Composite
24.7%
1.93
12.95%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.98%
EBIT Growth (5y)
18.44%
EBIT to Interest (avg)
3.25
Debt to EBITDA (avg)
3.04
Net Debt to Equity (avg)
0.59
Sales to Capital Employed (avg)
0.75
Tax Ratio
4.51%
Dividend Payout Ratio
78.90%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.89%
ROE (avg)
5.50%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
246
Industry P/E
Price to Book Value
22.43
EV to EBIT
204.59
EV to EBITDA
92.13
EV to Capital Employed
13.41
EV to Sales
15.32
PEG Ratio
2.72
Dividend Yield
0.24%
ROCE (Latest)
6.56%
ROE (Latest)
9.13%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
NET SALES(HY)
At CNY 500.94 MM has Grown at 31.22%
NET PROFIT(HY)
At CNY 26.32 MM has Grown at 63.66%
CASH AND EQV(HY)
Highest at CNY 584.1 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -13.32 %
INVENTORY TURNOVER RATIO(HY)
Highest at 3.26 times
DEBTORS TURNOVER RATIO(HY)
Highest at 2.5 times
-9What is not working for the Company
INTEREST(9M)
At CNY 8.08 MM has Grown at 11.52%
INTEREST COVERAGE RATIO(Q)
Lowest at 499.45
RAW MATERIAL COST(Y)
Grown by 17.82% (YoY
OPERATING PROFIT(Q)
Lowest at CNY 12.66 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 5.11 %
PRE-TAX PROFIT(Q)
Lowest at CNY 10.3 MM
EPS(Q)
Lowest at CNY 0.04
Here's what is working for Ningbo Henghe Precision Industry Co., Ltd.
Net Sales
At CNY 500.94 MM has Grown at 31.22%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Net Profit
At CNY 26.32 MM has Grown at 63.66%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Cash and Eqv
Highest at CNY 584.1 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -13.32 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 3.26 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 2.5 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Ningbo Henghe Precision Industry Co., Ltd.
Interest Coverage Ratio
Lowest at 499.45
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
At CNY 8.08 MM has Grown at 11.52%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Profit
Lowest at CNY 12.66 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 5.11 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CNY 10.3 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
EPS
Lowest at CNY 0.04
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)
Raw Material Cost
Grown by 17.82% (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
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