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

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 15.53% and Operating profit at -164.29% 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 15.53% and Operating profit at -164.29% over the last 5 years

Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 3,838.84 MM
ROCE(HY) Highest at 4.72%
RAW MATERIAL COST(Y) Fallen by -13.47% (YoY)

With ROE of 3.03%, it has a attractive valuation with a 2.24 Price to Book Value

Over the past year, while the stock has generated a return of 12.35%, its profits have risen by 97.5% ; the PEG ratio of the company is 0.8
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.

13.73%

1.16

41.93%

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)

15.53%

EBIT Growth (5y)

-164.29%

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

2.24

EV to EBIT

-385.32

EV to EBITDA

16.76

EV to Capital Employed

1.87

EV to Sales

2.93

PEG Ratio

0.76

Dividend Yield

0.49%

ROCE (Latest)

-0.49%

ROE (Latest)

3.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 3,838.84 MM

ROCE(HY)

Highest at 4.72%

RAW MATERIAL COST(Y)

Fallen by -13.47% (YoY

NET SALES(Q)

Highest at CNY 4,599.54 MM

EPS(Q)

Highest at CNY 0.1

-6What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 44.27 %

INTEREST COVERAGE RATIO(Q)

Lowest at 173.95

OPERATING PROFIT(Q)

Lowest at CNY 141.15 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.07 %

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

Operating Cash Flow

Highest at CNY 3,838.84 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

Highest at CNY 4,599.54 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 4,599.54 MM has Grown at 18.66%

over average net sales of the previous four periods of CNY 3,876.15 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

EPS

Highest at CNY 0.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -13.47% (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.

Interest Coverage Ratio

Lowest at 173.95

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 44.27 % 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

Operating Profit

Lowest at CNY 141.15 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.07 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales