Suzhou Hengmingda Electronic Technology Co., Ltd. (002947) 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

Suzhou Hengmingda Electronic Technology Co., Ltd.

Why is Suzhou Hengmingda Electronic Technology Co., Ltd. ?

The company has declared Positive results for the last 7 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 700.88 MM
RAW MATERIAL COST(Y) Fallen by -5.36% (YoY)
CASH AND EQV(HY) Highest at CNY 3,973.68 MM

With ROE of 17.03%, it has a fair valuation with a 3.95 Price to Book Value

Over the past year, while the stock has generated a return of 19.70%, its profits have risen by 49.3% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 1.1

Consistent Returns over the last 3 years

Along with generating 19.70% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Suzhou Hengmingda Electronic Technology 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 Suzhou Hengmingda Electronic Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Suzhou Hengmingda Electronic Technology Co., Ltd.

24.56%

1.41

43.51%

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)

35.94%

EBIT Growth (5y)

34.56%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.55

Sales to Capital Employed (avg)

0.82

Tax Ratio

13.51%

Dividend Payout Ratio

31.41%

Pledged Shares

Institutional Holding

ROCE (avg)

18.02%

ROE (avg)

10.05%

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

3.95

EV to EBIT

19.07

EV to EBITDA

16.68

EV to Capital Employed

7.91

EV to Sales

3.76

PEG Ratio

0.58

Dividend Yield

1.13%

ROCE (Latest)

41.47%

ROE (Latest)

17.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 700.88 MM

RAW MATERIAL COST(Y)

Fallen by -5.36% (YoY

CASH AND EQV(HY)

Highest at CNY 3,973.68 MM

DEBT-EQUITY RATIO (HY)

Lowest at -55.35 %

OPERATING PROFIT MARGIN(Q)

Highest at 26.6 %

PRE-TAX PROFIT(Q)

Highest at CNY 191.27 MM

NET PROFIT(Q)

Highest at CNY 173.57 MM

EPS(Q)

Highest at CNY 0.7

-6What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 6,917.23

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.71 times

INTEREST(Q)

Highest at CNY 2.76 MM

Here's what is working for Suzhou Hengmingda Electronic Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 700.88 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Operating Profit Margin

Highest at 26.6 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 191.27 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 173.57 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.7

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 3,973.68 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -55.35 %

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 -5.36% (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 Hengmingda Electronic Technology Co., Ltd.

Interest

At CNY 2.76 MM has Grown at 799.99%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 6,917.23

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 2.76 MM

in the last five periods and Increased by 799.99% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 2.71 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio