Ningbo Orient Wires & Cable Co., Ltd. (603606) 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 Orient Wires & Cable Co., Ltd.

Why is Ningbo Orient Wires & Cable Co., Ltd. ?

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 1,153.73 MM
ROCE(HY) Lowest at 13.58%
DEBT-EQUITY RATIO (HY) Highest at 16.58 %

With ROE of 11.37%, it has a very expensive valuation with a 6.36 Price to Book Value

Over the past year, while the stock has generated a return of 26.04%, its profits have fallen by -21%
At the current price, the company has a high dividend yield of 0.7

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ningbo Orient Wires & Cable Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Ningbo Orient Wires & Cable Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Ningbo Orient Wires & Cable Co., Ltd.

-3.35%

0.82

32.37%

China Shanghai Composite

8.25%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.70%

EBIT Growth (5y)

5.91%

EBIT to Interest (avg)

55.77

Debt to EBITDA (avg)

0.34

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

930.24

Tax Ratio

16.78%

Dividend Payout Ratio

25.16%

Pledged Shares

Institutional Holding

ROCE (avg)

17.14%

ROE (avg)

19.82%

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

3.69

EV to EBIT

20.26

EV to EBITDA

18.25

EV to Capital Employed

3.51

EV to Sales

2.76

PEG Ratio

0.66

Dividend Yield

1.02%

ROCE (Latest)

17.33%

ROE (Latest)

16.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

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

2What is working for the Company

NET PROFIT(9M)

At CNY 922.22 MM has Grown at 71.17%

-24What is not working for the Company

NET SALES(HY)

At CNY 2,882.96 MM has Grown at -34.7%

INTEREST(HY)

At CNY 8.57 MM has Grown at 20.41%

OPERATING CASH FLOW(Y)

Lowest at CNY 279.66 MM

ROCE(HY)

Lowest at 0%

PRE-TAX PROFIT(Q)

At CNY 222.18 MM has Fallen at -45.57%

NET PROFIT(Q)

At CNY 193.24 MM has Fallen at -43.25%

RAW MATERIAL COST(Y)

Grown by 106.99% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

OPERATING PROFIT(Q)

Lowest at CNY 0 MM

Here's what is not working for Ningbo Orient Wires & Cable Co., Ltd.

Net Sales

At CNY 2,882.96 MM has Grown at -34.7%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 8.57 MM has Grown at 20.41%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 279.66 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)

Pre-Tax Profit

At CNY 222.18 MM has Fallen at -45.57%

over average net sales of the previous four periods of CNY 408.17 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 193.24 MM has Fallen at -43.25%

over average net sales of the previous four periods of CNY 340.51 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 0 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 106.99% (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