Shanghai Hugong Electric Group Co., Ltd. (603131) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shanghai Hugong Electric Group Co., Ltd.

Why is Shanghai Hugong Electric Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 5.27%

The company has been able to generate a Return on Capital Employed (avg) of 5.27% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 2.57% and Operating profit at -160.70% over the last 5 years

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 45.69%, its profits have risen by 61.9%
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 Industrial Manufacturing)

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

Is Shanghai Hugong Electric Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Hugong Electric Group Co., Ltd.

-100.0%

2.14

47.57%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.57%

EBIT Growth (5y)

-160.70%

EBIT to Interest (avg)

3.61

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

0.56

Tax Ratio

24.81%

Dividend Payout Ratio

30.38%

Pledged Shares

Institutional Holding

ROCE (avg)

5.27%

ROE (avg)

4.35%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

5.36

EV to EBIT

-732.63

EV to EBITDA

187.98

EV to Capital Employed

8.86

EV to Sales

5.94

PEG Ratio

Dividend Yield

0.06%

ROCE (Latest)

-1.21%

ROE (Latest)

-1.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 221.21 MM

NET PROFIT(HY)

Higher at CNY -26.27 MM

ROCE(HY)

Highest at 0.19%

DEBT-EQUITY RATIO (HY)

Lowest at -34.01 %

DEBTORS TURNOVER RATIO(HY)

Highest at 2.65%

CASH AND EQV(HY)

Highest at CNY 2,182.7 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.72%

PRE-TAX PROFIT(Q)

At CNY 9.82 MM has Grown at 89.35%

-9What is not working for the Company

NET SALES(Q)

At CNY 204.34 MM has Fallen at -23.69%

INTEREST(9M)

At CNY 16.24 MM has Grown at 6.74%

RAW MATERIAL COST(Y)

Grown by 10.42% (YoY

Here's what is working for Shanghai Hugong Electric Group Co., Ltd.

Operating Cash Flow

Highest at CNY 221.21 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at -34.01 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 2.65% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Pre-Tax Profit

At CNY 9.82 MM has Grown at 89.35%

over average net sales of the previous four periods of CNY 5.19 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 6.7 MM has Grown at 108.96%

over average net sales of the previous four periods of CNY 3.2 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 2,182.7 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.72%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Shanghai Hugong Electric Group Co., Ltd.

Net Sales

At CNY 204.34 MM has Fallen at -23.69%

over average net sales of the previous four periods of CNY 267.76 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 10.94 MM has Grown at 7.02%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 204.34 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Raw Material Cost

Grown by 10.42% (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 0.44 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income