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 buy?

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.

19.14%

0.82

32.37%

China Shanghai Composite

24.7%

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)

16.28%

EBIT Growth (5y)

4.42%

EBIT to Interest (avg)

58.31

Debt to EBITDA (avg)

0.32

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

0.87

Tax Ratio

12.26%

Dividend Payout Ratio

30.61%

Pledged Shares

Institutional Holding

ROCE (avg)

20.09%

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

6.36

EV to EBIT

57.05

EV to EBITDA

45.48

EV to Capital Employed

5.84

EV to Sales

4.90

PEG Ratio

Dividend Yield

0.68%

ROCE (Latest)

10.23%

ROE (Latest)

11.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

No Trend

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

14What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -6.14% (YoY

CASH AND EQV(HY)

Highest at CNY 4,582.83 MM

NET SALES(Q)

Highest at CNY 3,065.97 MM

OPERATING PROFIT(Q)

Highest at CNY 500.64 MM

PRE-TAX PROFIT(Q)

Highest at CNY 512.96 MM

NET PROFIT(Q)

Highest at CNY 441.01 MM

EPS(Q)

Highest at CNY 0.64

-8What is not working for the Company

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 %

Here's what is working for Ningbo Orient Wires & Cable Co., Ltd.

Pre-Tax Profit

At CNY 512.96 MM has Grown at 124.4%

over average net sales of the previous four periods of CNY 228.59 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 441.01 MM has Grown at 117.44%

over average net sales of the previous four periods of CNY 202.82 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 3,065.97 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 3,065.97 MM has Grown at 29.92%

over average net sales of the previous four periods of CNY 2,359.89 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 500.64 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 512.96 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 441.01 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.64

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 4,582.83 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -6.14% (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 Orient Wires & Cable Co., Ltd.

Operating Cash Flow

Lowest at CNY 1,153.73 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)

Debt-Equity Ratio

Highest at 16.58 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio