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.

5.26%

0.72

46.91%

China Shanghai Composite

13.33%

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)

-8.56%

EBIT Growth (5y)

-207.73%

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)

0.43

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

3.16

EV to EBIT

-30.80

EV to EBITDA

-36.76

EV to Capital Employed

2.90

EV to Sales

7.33

PEG Ratio

Dividend Yield

ROCE (Latest)

-9.40%

ROE (Latest)

-10.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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 PROFIT(HY)

Higher at CNY -51.01 MM

NET SALES(Q)

Highest at CNY 181.09 MM

-27What is not working for the Company

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

ROCE(HY)

Lowest at -11.42%

NET PROFIT(Q)

At CNY -30.3 MM has Fallen at -52.15%

RAW MATERIAL COST(Y)

Grown by 76.77% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 16.46 %

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

Net Sales

At CNY 181.09 MM has Grown at 97.72%

over average net sales of the previous four periods of CNY 91.59 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Net Sales

Highest at CNY 181.09 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Sichuan Huati Lighting Technology Co., Ltd.

Pre-Tax Profit

At CNY -38.8 MM has Fallen at -94.49%

over average net sales of the previous four periods of CNY -19.95 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Interest

At CNY 6.63 MM has Grown at 11.26%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY -30.3 MM has Fallen at -52.15%

over average net sales of the previous four periods of CNY -19.91 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -77.02 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 16.46 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 76.77% (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