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

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 0.29% and Operating profit at -173.09% 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 27.69%, 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.

2.59%

1.25

53.50%

China Shanghai Composite

23.91%

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)

-5.36%

EBIT Growth (5y)

-124.63%

EBIT to Interest (avg)

3.61

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

0.57

Tax Ratio

24.81%

Dividend Payout Ratio

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

3.60

EV to EBIT

-5002.75

EV to EBITDA

164.82

EV to Capital Employed

6.98

EV to Sales

5.47

PEG Ratio

Dividend Yield

0.06%

ROCE (Latest)

-0.02%

ROE (Latest)

-0.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

15What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -56.07 %

DEBTORS TURNOVER RATIO(HY)

Highest at 2.93 times

PRE-TAX PROFIT(Q)

At CNY 5.65 MM has Grown at 76.23%

NET PROFIT(Q)

Highest at CNY 10.12 MM

EPS(Q)

Highest at CNY 0.03

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 83.46 MM

RAW MATERIAL COST(Y)

Grown by 9.46% (YoY

NET SALES(Q)

Lowest at CNY 198.93 MM

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

Net Profit

At CNY 10.12 MM has Grown at 314.84%

over average net sales of the previous four periods of CNY -4.71 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at -56.07 % 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 2.93 times 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 5.65 MM has Grown at 76.23%

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

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 10.12 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)

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

Net Sales

At CNY 198.93 MM has Fallen at -13.78%

over average net sales of the previous four periods of CNY 230.73 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 83.46 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 198.93 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Raw Material Cost

Grown by 9.46% (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