ScoreWhy is Weihai Honglin Electronic Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 20.90% and Operating profit at 7.23% over the last 5 years
2
The company has declared Negative results for the last 4 consecutive quarters
- INTEREST(HY) At CNY 4.28 MM has Grown at 340.95%
- OPERATING CASH FLOW(Y) Lowest at CNY -172.44 MM
- ROCE(HY) Lowest at 6.88%
3
With ROE of 6.88%, it has a attractive valuation with a 0.55 Price to Book Value
- Over the past year, while the stock has generated a return of -0.80%, its profits have risen by 1% ; the PEG ratio of the company is 7.9
4
Underperformed the market in the last 1 year
- Even though the market (China Shanghai Composite) has generated returns of 16.83% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -0.80% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Weihai Honglin Electronic 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 Weihai Honglin Electronic Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Weihai Honglin Electronic Co., Ltd.
-8.15%
0.62
47.11%
China Shanghai Composite
0.9%
1.20
14.07%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
20.90%
EBIT Growth (5y)
7.23%
EBIT to Interest (avg)
50.74
Debt to EBITDA (avg)
1.37
Net Debt to Equity (avg)
0.08
Sales to Capital Employed (avg)
0.89
Tax Ratio
5.01%
Dividend Payout Ratio
38.75%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.89%
ROE (avg)
7.24%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
1.58
EV to EBIT
24.73
EV to EBITDA
19.94
EV to Capital Employed
1.46
EV to Sales
1.35
PEG Ratio
22.60
Dividend Yield
NA
ROCE (Latest)
5.89%
ROE (Latest)
6.88%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
NET SALES(Q)
Highest at CNY 1,205.22 MM
-15What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY -8.07 MM
DEBT-EQUITY RATIO
(HY)
Highest at 38.58 %
INTEREST(Q)
At CNY 1.83 MM has Grown at 38.38%
RAW MATERIAL COST(Y)
Grown by 12.7% (YoY
Here's what is working for Weihai Honglin Electronic Co., Ltd.
Net Sales
Highest at CNY 1,205.22 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Here's what is not working for Weihai Honglin Electronic Co., Ltd.
Interest
At CNY 1.83 MM has Grown at 38.38%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debt-Equity Ratio
Highest at 38.58 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Operating Cash Flow
Lowest at CNY -8.07 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Raw Material Cost
Grown by 12.7% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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