Shenzhen Highpower Technology Co., Ltd. () 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

Shenzhen Highpower Technology Co., Ltd.

Why is Shenzhen Highpower Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.62%

The company has been able to generate a Return on Capital Employed (avg) of 2.62% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 15.70% and Operating profit at -3.01% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 3.16% signifying low profitability per unit of shareholders funds

With a growth in Net Profit of 25.94%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 5 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 705.16 MM
NET PROFIT(HY) At CNY 79.23 MM has Grown at 67.15%
ROCE(HY) Highest at 7.11%

With ROE of 5.68%, it has a attractive valuation with a 1.85 Price to Book Value

Over the past year, while the stock has generated a return of 55.11%, its profits have risen by 273.5% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Highpower Technology 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 Shenzhen Highpower Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Highpower Technology Co., Ltd.

55.11%

1.89

44.00%

China Shanghai Composite

21.68%

1.63

13.30%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.70%

EBIT Growth (5y)

-3.01%

EBIT to Interest (avg)

2.91

Debt to EBITDA (avg)

6.17

Net Debt to Equity (avg)

1.27

Sales to Capital Employed (avg)

0.81

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

15.40%

Pledged Shares

Institutional Holding

ROCE (avg)

2.62%

ROE (avg)

3.16%

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

1.85

EV to EBIT

35.26

EV to EBITDA

17.12

EV to Capital Employed

1.52

EV to Sales

1.49

PEG Ratio

0.12

Dividend Yield

ROCE (Latest)

4.32%

ROE (Latest)

5.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

No Trend

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 705.16 MM

NET PROFIT(HY)

At CNY 79.23 MM has Grown at 67.15%

ROCE(HY)

Highest at 7.11%

RAW MATERIAL COST(Y)

Fallen by -47.99% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 5.97 times

-2What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY 62.17 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.59 %

Here's what is working for Shenzhen Highpower Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 705.16 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)

Net Profit

At CNY 79.23 MM has Grown at 67.15%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 5.97 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -47.99% (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 Shenzhen Highpower Technology Co., Ltd.

Operating Profit

Lowest at CNY 62.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.59 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales