Shenzhen Honor Electronic Co. Ltd. (300870) 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

Shenzhen Honor Electronic Co. Ltd.

Why is Shenzhen Honor Electronic Co. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 14.93% and Operating profit at 11.94% over the last 5 years

Positive results in Mar 25

NET SALES(9M) At CNY 3,067.03 MM has Grown at 35.88%
OPERATING CASH FLOW(Y) Highest at CNY 652.62 MM
INVENTORY TURNOVER RATIO(HY) Highest at 5.82%

With ROE of 12.67%, it has a expensive valuation with a 3.41 Price to Book Value

Over the past year, while the stock has generated a return of 246.24%, its profits have risen by 14.8% ; the PEG ratio of the company is 1.8
At the current price, the company has a high dividend yield of 1.1

Market Beating performance in long term as well as near term

Along with generating 246.24% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Honor Electronic 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 Honor Electronic Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Honor Electronic Co. Ltd.

123.96%

4.12

90.06%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.93%

EBIT Growth (5y)

11.94%

EBIT to Interest (avg)

52.00

Debt to EBITDA (avg)

0.51

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

1.03

Tax Ratio

8.05%

Dividend Payout Ratio

33.46%

Pledged Shares

Institutional Holding

ROCE (avg)

10.71%

ROE (avg)

9.34%

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

3.41

EV to EBIT

24.75

EV to EBITDA

16.63

EV to Capital Employed

3.28

EV to Sales

2.00

PEG Ratio

1.82

Dividend Yield

1.08%

ROCE (Latest)

13.24%

ROE (Latest)

12.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

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

13What is working for the Company

NET SALES(9M)

At CNY 3,067.03 MM has Grown at 35.88%

OPERATING CASH FLOW(Y)

Highest at CNY 652.62 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 5.82%

RAW MATERIAL COST(Y)

Fallen by -6.1% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 0.63 %

NET PROFIT(Q)

At CNY 49.12 MM has Grown at 58.81%

-12What is not working for the Company

INTEREST(9M)

At CNY 27.25 MM has Grown at 79.4%

INTEREST COVERAGE RATIO(Q)

Lowest at 692.79

OPERATING PROFIT(Q)

Lowest at CNY 48.96 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.54 %

Here's what is working for Shenzhen Honor Electronic Co. Ltd.

Inventory Turnover Ratio

Highest at 5.82% and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Cash Flow

Highest at CNY 652.62 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 884.15 MM has Grown at 27.23%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY 49.12 MM has Grown at 58.81%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at 0.63 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -6.1% (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 Honor Electronic Co. Ltd.

Interest

At CNY 17.48 MM has Grown at 80.71%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 692.79

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 48.96 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.54 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales