Sichuan Haowu Electromechanical Co., Ltd. (000757) 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

Sichuan Haowu Electromechanical Co., Ltd.

Why is Sichuan Haowu Electromechanical Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.86%

The company has been able to generate a Return on Capital Employed (avg) of 2.86% 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 -5.15% and Operating profit at -6.24% over the last 5 years

The company has declared positive results for the last 4 consecutive quarters

PRE-TAX PROFIT(Q) At CNY 18.32 MM has Grown at 468.37%
NET PROFIT(Q) At CNY 11.96 MM has Grown at 316.77%
ROCE(HY) Highest at 2.97%

With ROE of 1.88%, it has a fair valuation with a 1.75 Price to Book Value

Over the past year, while the stock has generated a return of 0.00%, its profits have risen by 129.1% ; the PEG ratio of the company is 0.7

Underperformed the market in the last 1 year

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sichuan Haowu Electromechanical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

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

Is Sichuan Haowu Electromechanical Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sichuan Haowu Electromechanical Co., Ltd.

0.0%

1.62

41.51%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.15%

EBIT Growth (5y)

-6.24%

EBIT to Interest (avg)

1.07

Debt to EBITDA (avg)

0.26

Net Debt to Equity (avg)

-0.39

Sales to Capital Employed (avg)

1.76

Tax Ratio

47.90%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.86%

ROE (avg)

1.91%

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

1.75

EV to EBIT

46.46

EV to EBITDA

11.95

EV to Capital Employed

1.99

EV to Sales

0.72

PEG Ratio

0.72

Dividend Yield

ROCE (Latest)

4.29%

ROE (Latest)

1.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

22What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 18.32 MM has Grown at 468.37%

NET PROFIT(Q)

At CNY 11.96 MM has Grown at 316.77%

ROCE(HY)

Highest at 2.97%

RAW MATERIAL COST(Y)

Fallen by -51.12% (YoY

CASH AND EQV(HY)

Highest at CNY 1,658.16 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 6.65 times

-10What is not working for the Company

NET SALES(Q)

At CNY 725.78 MM has Fallen at -18.69%

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.97 times

OPERATING PROFIT(Q)

Lowest at CNY 16.82 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.32 %

Here's what is working for Sichuan Haowu Electromechanical Co., Ltd.

Pre-Tax Profit

At CNY 18.32 MM has Grown at 468.37%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 11.96 MM has Grown at 316.77%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 1,658.16 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 6.65 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 -51.12% (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 Sichuan Haowu Electromechanical Co., Ltd.

Net Sales

At CNY 725.78 MM has Fallen at -18.69%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 16.82 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.32 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 8.97 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio