Weihai Huadong Automation Co., Ltd. (002248) 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

Weihai Huadong Automation Co., Ltd.

Why is Weihai Huadong Automation Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 6.30% and Operating profit at 25.21% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 9.16% signifying low profitability per unit of shareholders funds

The company has declared Positive results for the last 7 consecutive quarters

NET PROFIT(HY) At CNY 19.16 MM has Grown at 168.04%
ROCE(HY) Highest at 34.95%
DEBT-EQUITY RATIO (HY) Lowest at -3.36 %

With ROE of 29.54%, it has a very expensive valuation with a 17.41 Price to Book Value

Over the past year, while the stock has generated a return of 8.43%, its profits have risen by 210.1% ; the PEG ratio of the company is 0.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Weihai Huadong Automation Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is Weihai Huadong Automation Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Weihai Huadong Automation Co., Ltd.

-18.32%

1.57

51.38%

China Shanghai Composite

8.25%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.30%

EBIT Growth (5y)

25.21%

EBIT to Interest (avg)

3.45

Debt to EBITDA (avg)

2.85

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

1.72

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

12.35%

ROE (avg)

9.16%

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

23.35

EV to EBIT

79.58

EV to EBITDA

57.56

EV to Capital Employed

28.63

EV to Sales

7.94

PEG Ratio

0.38

Dividend Yield

ROCE (Latest)

35.98%

ROE (Latest)

29.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Mildly Bearish

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

14What is working for the Company

NET PROFIT(HY)

At CNY 19.16 MM has Grown at 168.04%

ROCE(HY)

Highest at 34.95%

DEBT-EQUITY RATIO (HY)

Lowest at -3.36 %

RAW MATERIAL COST(Y)

Fallen by -15.76% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.01 times

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 33.39 MM

NET SALES(Q)

Lowest at CNY 76.21 MM

Here's what is working for Weihai Huadong Automation Co., Ltd.

Net Profit

At CNY 19.16 MM has Grown at 168.04%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at -3.36 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 4.01 times

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 -15.76% (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 Weihai Huadong Automation Co., Ltd.

Operating Cash Flow

Lowest at CNY 33.39 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 76.21 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)