Sichuan Huati Lighting Technology Co., Ltd. (603679) 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 Huati Lighting Technology Co., Ltd.

Why is Sichuan Huati Lighting Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.23%

The company has been able to generate a Return on Capital Employed (avg) of 1.23% 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 -8.56% and Operating profit at -207.73% over the last 5 years

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

INTEREST(HY) At CNY 6.63 MM has Grown at 11.26%
PRE-TAX PROFIT(Q) At CNY -38.8 MM has Fallen at -94.49%
OPERATING CASH FLOW(Y) Lowest at CNY -77.02 MM

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 9.87%, its profits have fallen by -295.2%

Underperformed the market in the last 1 year

The stock has generated a return of 9.87% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 Electronics & Appliances)

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

Is Sichuan Huati Lighting Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sichuan Huati Lighting Technology Co., Ltd.

49.89%

0.72

46.91%

China Shanghai Composite

21.43%

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)

-3.62%

EBIT Growth (5y)

-220.36%

EBIT to Interest (avg)

-4.13

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

0.42

Tax Ratio

5.45%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.23%

ROE (avg)

1.74%

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

2.68

EV to EBIT

-18.81

EV to EBITDA

-20.13

EV to Capital Employed

2.74

EV to Sales

4.43

PEG Ratio

Dividend Yield

ROCE (Latest)

-14.55%

ROE (Latest)

-12.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

16What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.37% (YoY

NET SALES(Q)

At CNY 143.74 MM has Grown at 22.53%

PRE-TAX PROFIT(Q)

Highest at CNY 2.71 MM

NET PROFIT(Q)

Highest at CNY -1.33 MM

-14What is not working for the Company

ROCE(HY)

Lowest at -16.12%

CASH AND EQV(HY)

Lowest at CNY 395.89 MM

INTEREST(Q)

Highest at CNY 4.66 MM

Here's what is working for Sichuan Huati Lighting Technology Co., Ltd.

Net Sales

At CNY 143.74 MM has Grown at 22.53%

over average net sales of the previous four periods of CNY 117.31 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 2.71 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 2.71 MM has Grown at 107.87%

over average net sales of the previous four periods of CNY -34.42 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY -1.33 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY -1.33 MM has Grown at 94.06%

over average net sales of the previous four periods of CNY -22.31 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -3.37% (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 Huati Lighting Technology Co., Ltd.

Interest

At CNY 4.66 MM has Grown at 48.05%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 4.66 MM

in the last five periods and Increased by 48.05% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 395.89 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents