Shandong Hongyu Precision Machinery Co., Ltd. (002890) 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

Shandong Hongyu Precision Machinery Co., Ltd.

Why is Shandong Hongyu Precision Machinery Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.93%

The company has been able to generate a Return on Capital Employed (avg) of 4.93% signifying low profitability per unit of total capital (equity and debt)

Flat results in Mar 26

NET PROFIT(HY) At CNY 3 MM has Grown at -53.11%
OPERATING CASH FLOW(Y) Lowest at CNY -14.64 MM
ROCE(HY) Lowest at 1.77%

With ROE of 1.31%, it has a very expensive valuation with a 3.94 Price to Book Value

Over the past year, while the stock has generated a return of 19.06%, its profits have fallen by -37.1%
At the current price, the company has a high dividend yield of 0.1

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 Automobiles)

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

Is Shandong Hongyu Precision Machinery Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shandong Hongyu Precision Machinery Co., Ltd.

-100.0%

2.72

35.30%

China Shanghai Composite

8.25%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.76%

EBIT Growth (5y)

-27.33%

EBIT to Interest (avg)

15.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

0.50

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

42.69%

Pledged Shares

Institutional Holding

ROCE (avg)

3.60%

ROE (avg)

3.17%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

283

Industry P/E

Price to Book Value

3.71

EV to EBIT

380.38

EV to EBITDA

92.49

EV to Capital Employed

4.50

EV to Sales

7.01

PEG Ratio

Dividend Yield

0.15%

ROCE (Latest)

1.18%

ROE (Latest)

1.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

12What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -12.07% (YoY

NET SALES(Q)

Highest at CNY 103.47 MM

PRE-TAX PROFIT(Q)

Highest at CNY 5.51 MM

NET PROFIT(Q)

Highest at CNY 5.1 MM

EPS(Q)

Highest at CNY 0.03

-16What is not working for the Company

NET PROFIT(HY)

At CNY 3 MM has Grown at -53.11%

OPERATING CASH FLOW(Y)

Lowest at CNY -14.64 MM

ROCE(HY)

Lowest at 1.77%

CASH AND EQV(HY)

Lowest at CNY 405.78 MM

DEBT-EQUITY RATIO (HY)

Highest at -22.63 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.25 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.4 times

Here's what is working for Shandong Hongyu Precision Machinery Co., Ltd.

Pre-Tax Profit

At CNY 5.51 MM has Grown at 227.12%

over average net sales of the previous four periods of CNY 1.68 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 103.47 MM has Grown at 38.47%

over average net sales of the previous four periods of CNY 74.73 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Profit

At CNY 5.1 MM has Grown at 182.45%

over average net sales of the previous four periods of CNY 1.81 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 103.47 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 5.51 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 5.1 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -12.07% (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 Shandong Hongyu Precision Machinery Co., Ltd.

Operating Cash Flow

Lowest at CNY -14.64 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Cash and Eqv

Lowest at CNY 405.78 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -22.63 %

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

Inventory Turnover Ratio

Lowest at 2.25 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 1.4 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio