Tianshui Huatian Technology Co., Ltd. (002185) 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

Tianshui Huatian Technology Co., Ltd.

Why is Tianshui Huatian Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.61%

The company has been able to generate a Return on Capital Employed (avg) of 3.61% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 14.23% and Operating profit at -174.16% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 6.11% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 14.23% and Operating profit at -174.16% over the last 5 years

Flat results in Mar 25

INTEREST(9M) At CNY 221.84 MM has Grown at 10.2%
DEBT-EQUITY RATIO (HY) Highest at 39.86 %
OPERATING PROFIT(Q) Lowest at CNY -136.96 MM

With ROE of 3.03%, it has a attractive valuation with a 2.13 Price to Book Value

Over the past year, while the stock has generated a return of -7.91%, its profits have risen by 97.5% ; the PEG ratio of the company is 0.7
At the current price, the company has a high dividend yield of 0.5

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tianshui Huatian Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

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

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

Is Tianshui Huatian Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Tianshui Huatian Technology Co., Ltd.

-100.0%

1.29

36.97%

China Shanghai Composite

15.19%

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)

14.23%

EBIT Growth (5y)

-174.16%

EBIT to Interest (avg)

2.73

Debt to EBITDA (avg)

1.51

Net Debt to Equity (avg)

0.39

Sales to Capital Employed (avg)

0.46

Tax Ratio

4.27%

Dividend Payout Ratio

30.16%

Pledged Shares

Institutional Holding

ROCE (avg)

3.61%

ROE (avg)

6.11%

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

2.13

EV to EBIT

-369.94

EV to EBITDA

16.09

EV to Capital Employed

1.79

EV to Sales

2.81

PEG Ratio

0.72

Dividend Yield

0.51%

ROCE (Latest)

-0.49%

ROE (Latest)

3.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

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

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 3,394.59 MM

NET SALES(9M)

At CNY 11,252.11 MM has Grown at 21.47%

NET PROFIT(HY)

At CNY 163.54 MM has Grown at 71.95%

ROCE(HY)

Highest at 3.32%

INVENTORY TURNOVER RATIO(HY)

Highest at 6.02%

RAW MATERIAL COST(Y)

Fallen by -36.91% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 6.21%

-15What is not working for the Company

INTEREST(9M)

At CNY 221.84 MM has Grown at 10.2%

DEBT-EQUITY RATIO (HY)

Highest at 39.86 %

OPERATING PROFIT(Q)

Lowest at CNY -136.96 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.86 %

PRE-TAX PROFIT(Q)

Lowest at CNY -11.02 MM

NET PROFIT(Q)

Lowest at CNY 6.41 MM

EPS(Q)

Lowest at CNY -0.01

Here's what is working for Tianshui Huatian Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 3,394.59 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)

Inventory Turnover Ratio

Highest at 6.02% and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

At CNY 11,252.11 MM has Grown at 21.47%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 6.21%

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 -36.91% (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 Tianshui Huatian Technology Co., Ltd.

Pre-Tax Profit

At CNY -11.02 MM has Fallen at -108.44%

over average net sales of the previous four periods of CNY 130.46 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 6.41 MM has Fallen at -94.49%

over average net sales of the previous four periods of CNY 116.51 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 39.86 % and Grown

In each half year 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

Interest

At CNY 221.84 MM has Grown at 10.2%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -136.96 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -3.86 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -11.02 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 6.41 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)