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 10.27% and Operating profit at 8.73% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(HY) At CNY -162.04 MM has Grown at -132.92%
INTEREST(9M) At CNY 66.02 MM has Grown at 8.5%
ROCE(HY) Lowest at 2.88%

With ROE of 2.49%, it has a expensive valuation with a 2.75 Price to Book Value

Over the past year, while the stock has generated a return of 48.08%, its profits have fallen by -82%

Market Beating Performance

The stock has generated a return of 48.08% in the last 1 year, much higher than market (China Shanghai Composite) returns of 13.33%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ningbo Huaxiang Electronic Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ningbo Huaxiang Electronic Co., Ltd.

47.07%

1.66

52.35%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.27%

EBIT Growth (5y)

8.73%

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)

1.67

Tax Ratio

20.55%

Dividend Payout Ratio

40.06%

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

110

Industry P/E

Price to Book Value

2.75

EV to EBIT

25.77

EV to EBITDA

9.13

EV to Capital Employed

2.63

EV to Sales

1.12

PEG Ratio

Dividend Yield

0.96%

ROCE (Latest)

10.22%

ROE (Latest)

2.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 3,048.79 MM

INTEREST COVERAGE RATIO(Q)

Highest at 4,088.58

RAW MATERIAL COST(Y)

Fallen by -31.97% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 7.61 times

PRE-TAX PROFIT(Q)

Highest at CNY 576.39 MM

NET PROFIT(Q)

Highest at CNY 462.33 MM

EPS(Q)

Highest at CNY 0.57

-14What is not working for the Company

NET PROFIT(HY)

At CNY -162.04 MM has Grown at -132.92%

INTEREST(9M)

At CNY 66.02 MM has Grown at 8.5%

ROCE(HY)

Lowest at 2.88%

CASH AND EQV(HY)

Lowest at CNY 4,315.16 MM

NET SALES(Q)

At CNY 6,345.13 MM has Fallen at -7.91%

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

Pre-Tax Profit

At CNY 576.39 MM has Grown at 453.66%

over average net sales of the previous four periods of CNY 104.11 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 462.33 MM has Grown at 3,403.91%

over average net sales of the previous four periods of CNY 13.19 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Interest Coverage Ratio

Highest at 4,088.58

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at CNY 3,048.79 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 576.39 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 462.33 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.57

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 7.61 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 -31.97% (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.

Interest

At CNY 66.02 MM has Grown at 8.5%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 6,345.13 MM has Fallen at -7.91%

over average net sales of the previous four periods of CNY 6,889.87 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 4,315.16 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents