Ningbo Huaxiang Electronic Co., Ltd. (002048) 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 Huaxiang Electronic Co., Ltd.

Why is Ningbo Huaxiang Electronic Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 6.30% and Operating profit at 8.05% over the last 5 years

Negative results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 2,677.78 MM
INTEREST(Q) At CNY 20.26 MM has Grown at 101.36%
INTEREST COVERAGE RATIO(Q) Lowest at 1,356.28

With ROE of 6.03%, it has a expensive valuation with a 1.36 Price to Book Value

Over the past year, while the stock has generated a return of 73.64%, its profits have fallen by -43.5%

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 Miscellaneous)

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

Is Ningbo Huaxiang Electronic Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ningbo Huaxiang Electronic Co., Ltd.

67.83%

1.78

53.98%

China Shanghai Composite

23.91%

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)

6.30%

EBIT Growth (5y)

8.05%

EBIT to Interest (avg)

24.66

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

1.73

Tax Ratio

20.55%

Dividend Payout Ratio

50.51%

Pledged Shares

Institutional Holding

ROCE (avg)

11.00%

ROE (avg)

12.44%

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

1.36

EV to EBIT

9.29

EV to EBITDA

5.75

EV to Capital Employed

1.36

EV to Sales

0.66

PEG Ratio

Dividend Yield

2.74%

ROCE (Latest)

14.63%

ROE (Latest)

6.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

10What is working for the Company

NET PROFIT(Q)

At CNY 272.92 MM has Grown at 157.6%

RAW MATERIAL COST(Y)

Fallen by -7% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 8.45 times

PRE-TAX PROFIT(Q)

At CNY 382.98 MM has Grown at 65.29%

-20What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 2,677.78 MM

INTEREST(Q)

At CNY 20.26 MM has Grown at 101.36%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,356.28

CASH AND EQV(HY)

Lowest at CNY 5,344.04 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.88 times

NET SALES(Q)

Lowest at CNY 5,169.48 MM

OPERATING PROFIT(Q)

Lowest at CNY 274.79 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.32 %

Here's what is working for Ningbo Huaxiang Electronic Co., Ltd.

Net Profit

At CNY 272.92 MM has Grown at 157.6%

over average net sales of the previous four periods of CNY 105.95 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

At CNY 382.98 MM has Grown at 65.29%

over average net sales of the previous four periods of CNY 231.7 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Highest at 8.45 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% (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 Huaxiang Electronic Co., Ltd.

Net Sales

At CNY 5,169.48 MM has Fallen at -21.03%

over average net sales of the previous four periods of CNY 6,546.45 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 2,677.78 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 20.26 MM has Grown at 101.36%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,356.28

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 5,169.48 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 274.79 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.32 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 5,344.04 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 2.88 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio