Weichai Heavy Machinery Co., Ltd. (000880) 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

Weichai Heavy Machinery Co., Ltd.

Why is Weichai Heavy Machinery Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 13.33% and Operating profit at 79.28% over the last 5 years

With a growth in Operating Profit of NAN%, the company declared Very Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 773.08 MM
ROCE(HY) Highest at 11.9%
NET SALES(Q) At CNY 1,622.29 MM has Grown at 73.57%

With ROE of 10.91%, it has a fair valuation with a 7.15 Price to Book Value

Over the past year, while the stock has generated a return of 2.98%, its profits have risen by 35% ; the PEG ratio of the company is 1.9
At the current price, the company has a high dividend yield of 0.4

Underperformed the market in the last 1 year

The stock has generated a return of 2.98% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.17%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Weichai Heavy Machinery Co., Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is Weichai Heavy Machinery Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Weichai Heavy Machinery Co., Ltd.

17.42%

3.27

69.97%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.33%

EBIT Growth (5y)

79.28%

EBIT to Interest (avg)

14.63

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.56

Sales to Capital Employed (avg)

1.34

Tax Ratio

5.13%

Dividend Payout Ratio

35.82%

Pledged Shares

Institutional Holding

ROCE (avg)

2.35%

ROE (avg)

8.17%

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

7.15

EV to EBIT

170.01

EV to EBITDA

66.19

EV to Capital Employed

17.36

EV to Sales

2.91

PEG Ratio

1.88

Dividend Yield

0.45%

ROCE (Latest)

10.21%

ROE (Latest)

10.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 773.08 MM

ROCE(HY)

Highest at 11.9%

NET SALES(Q)

At CNY 1,622.29 MM has Grown at 73.57%

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

-7What is not working for the Company

INTEREST(9M)

At CNY 0.05 MM has Grown at inf%

DEBT-EQUITY RATIO (HY)

Highest at -34.41 %

Here's what is working for Weichai Heavy Machinery Co., Ltd.

Net Sales

At CNY 1,622.29 MM has Grown at 73.57%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 773.08 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by 0% (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 Weichai Heavy Machinery Co., Ltd.

Interest

At CNY 0.05 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -34.41 %

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