Why is Ningbo Huaxiang Electronic Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 10.85% and Operating profit at 2.54% over the last 5 years
2
The company has declared Negative results for the last 3 consecutive quarters
- INTEREST(HY) At CNY 92.67 MM has Grown at 107.13%
- INTEREST COVERAGE RATIO(Q) Lowest at 1,131.41
- RAW MATERIAL COST(Y) Grown by 9.72% (YoY)
3
With ROE of 2.49%, it has a expensive valuation with a 2.05 Price to Book Value
- Over the past year, while the stock has generated a return of 125.20%, its profits have fallen by -82%
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.
107.15%
2.45
52.45%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
10.85%
EBIT Growth (5y)
2.54%
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)
1.60
Tax Ratio
20.55%
Dividend Payout Ratio
40.06%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.00%
ROE (avg)
12.44%
Valuation Key Factors 
Factor
Value
P/E Ratio
82
Industry P/E
Price to Book Value
2.05
EV to EBIT
19.41
EV to EBITDA
6.88
EV to Capital Employed
1.98
EV to Sales
0.84
PEG Ratio
NA
Dividend Yield
1.29%
ROCE (Latest)
10.22%
ROE (Latest)
2.49%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Movement
1What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 7.54%
-13What is not working for the Company
INTEREST(HY)
At CNY 92.67 MM has Grown at 107.13%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,131.41
RAW MATERIAL COST(Y)
Grown by 9.72% (YoY
OPERATING PROFIT(Q)
Lowest at CNY 300.68 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 4.83 %
Here's what is working for Ningbo Huaxiang Electronic Co., Ltd.
Inventory Turnover Ratio
Highest at 7.54%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Ningbo Huaxiang Electronic Co., Ltd.
Interest
At CNY 92.67 MM has Grown at 107.13%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Interest Coverage Ratio
Lowest at 1,131.41
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at CNY 300.68 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 4.83 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Raw Material Cost
Grown by 9.72% (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
Non Operating Income
Highest at CNY 0.24 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






