Shanghai Huace Navigation Technology Ltd. (300627) 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

Shanghai Huace Navigation Technology Ltd.

Why is Shanghai Huace Navigation Technology Ltd. ?

Flat results in Mar 26

INVENTORY TURNOVER RATIO(HY) Lowest at 2.51 times
OPERATING PROFIT(Q) Lowest at CNY 109.9 MM
OPERATING PROFIT MARGIN(Q) Lowest at 13.62 %

With ROE of 15.29%, it has a fair valuation with a 4.27 Price to Book Value

Over the past year, while the stock has generated a return of -9.87%, its profits have risen by 5.4%
At the current price, the company has a high dividend yield of 2.8

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.87% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shanghai Huace Navigation Technology Ltd. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is Shanghai Huace Navigation Technology Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanghai Huace Navigation Technology Ltd.

-13.06%

0.08

40.33%

China Shanghai Composite

21.43%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.28%

EBIT Growth (5y)

32.88%

EBIT to Interest (avg)

42.57

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

0.82

Tax Ratio

8.04%

Dividend Payout Ratio

51.04%

Pledged Shares

Institutional Holding

ROCE (avg)

14.27%

ROE (avg)

16.10%

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

4.27

EV to EBIT

28.43

EV to EBITDA

25.90

EV to Capital Employed

5.64

EV to Sales

4.67

PEG Ratio

Dividend Yield

2.79%

ROCE (Latest)

19.82%

ROE (Latest)

15.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -9.65% (YoY

CASH AND EQV(HY)

Highest at CNY 4,195.26 MM

-6What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.51 times

OPERATING PROFIT(Q)

Lowest at CNY 109.9 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.62 %

PRE-TAX PROFIT(Q)

Lowest at CNY 137.53 MM

NET PROFIT(Q)

Lowest at CNY 127.3 MM

EPS(Q)

Lowest at CNY 0.16

Here's what is working for Shanghai Huace Navigation Technology Ltd.

Cash and Eqv

Highest at CNY 4,195.26 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -9.65% (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 Shanghai Huace Navigation Technology Ltd.

Operating Profit

Lowest at CNY 109.9 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 13.62 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 137.53 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 127.3 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.16

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 2.51 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio