Suzhou Hailu Heavy Industry Co., Ltd. (002255) 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

Suzhou Hailu Heavy Industry Co., Ltd.

Why is Suzhou Hailu Heavy Industry Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 7.52% and Operating profit at 18.17% over the last 5 years

Positive results in Mar 25

OPERATING CASH FLOW(Y) Highest at CNY 748.37 MM
DEBT-EQUITY RATIO (HY) Lowest at -40.31 %
RAW MATERIAL COST(Y) Fallen by -28.05% (YoY)

With ROE of 10.62%, it has a very attractive valuation with a 1.05 Price to Book Value

Over the past year, while the stock has generated a return of 157.09%, its profits have risen by 42.4% ; the PEG ratio of the company is 0.2

Market Beating performance in long term as well as near term

Along with generating 157.09% 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 Suzhou Hailu Heavy Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Suzhou Hailu Heavy Industry Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Suzhou Hailu Heavy Industry Co., Ltd.

90.67%

2.91

55.87%

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)

7.52%

EBIT Growth (5y)

18.17%

EBIT to Interest (avg)

91.69

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

0.67

Tax Ratio

11.67%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

13.59%

ROE (avg)

13.43%

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

1.05

EV to EBIT

5.53

EV to EBITDA

4.46

EV to Capital Employed

1.08

EV to Sales

0.98

PEG Ratio

0.23

Dividend Yield

ROCE (Latest)

19.60%

ROE (Latest)

10.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

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 748.37 MM

DEBT-EQUITY RATIO (HY)

Lowest at -40.31 %

RAW MATERIAL COST(Y)

Fallen by -28.05% (YoY

CASH AND EQV(HY)

Highest at CNY 3,645.58 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2%

PRE-TAX PROFIT(Q)

At CNY 81.24 MM has Grown at 61.67%

NET PROFIT(Q)

At CNY 73.75 MM has Grown at 62.37%

-11What is not working for the Company

INTEREST(HY)

At CNY 1.44 MM has Grown at 37.35%

INTEREST COVERAGE RATIO(Q)

Lowest at 9,663.52

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.25%

OPERATING PROFIT MARGIN(Q)

Lowest at 15.29 %

Here's what is working for Suzhou Hailu Heavy Industry Co., Ltd.

Operating Cash Flow

Highest at CNY 748.37 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)

Debt-Equity Ratio

Lowest at -40.31 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Pre-Tax Profit

At CNY 81.24 MM has Grown at 61.67%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 73.75 MM has Grown at 62.37%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 3,645.58 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 2%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -28.05% (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 Suzhou Hailu Heavy Industry Co., Ltd.

Interest

At CNY 1.44 MM has Grown at 37.35%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 9,663.52

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 15.29 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 1.25%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio