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

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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 379.24 MM
ROCE(HY) Highest at 18.31%
NET SALES(Q) At CNY 644.03 MM has Grown at 52.52%

With ROE of 17.03%, it has a fair valuation with a 2.43 Price to Book Value

Over the past year, while the stock has generated a return of 33.83%, its profits have risen by 49.3% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 1.8

Consistent Returns over the last 3 years

Along with generating 33.83% 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.

28.56%

1.40

44.61%

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)

36.48%

EBIT Growth (5y)

28.56%

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

2.43

EV to EBIT

10.51

EV to EBITDA

9.19

EV to Capital Employed

4.36

EV to Sales

2.07

PEG Ratio

0.36

Dividend Yield

1.84%

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

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

27What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 379.24 MM

ROCE(HY)

Highest at 18.31%

NET SALES(Q)

At CNY 644.03 MM has Grown at 52.52%

RAW MATERIAL COST(Y)

Fallen by -8.83% (YoY

CASH AND EQV(HY)

Highest at CNY 3,593.65 MM

DEBT-EQUITY RATIO (HY)

Lowest at -53.2 %

INVENTORY TURNOVER RATIO(HY)

Highest at 8.64%

DEBTORS TURNOVER RATIO(HY)

Highest at 2.96%

PRE-TAX PROFIT(Q)

At CNY 128.38 MM has Grown at 57.83%

NET PROFIT(Q)

At CNY 108.21 MM has Grown at 53.62%

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Operating Cash Flow

Highest at CNY 379.24 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)

Net Sales

At CNY 644.03 MM has Grown at 52.52%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 128.38 MM has Grown at 57.83%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 108.21 MM has Grown at 53.62%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 3,593.65 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -53.2 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 8.64%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 2.96%

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 -8.83% (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