ScoreWhy is Wenzhou Hongfeng Electrical Alloy Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 3.08%
- The company has been able to generate a Return on Capital Employed (avg) of 3.08% signifying low profitability per unit of total capital (equity and debt)
2
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 14.55% and Operating profit at -204.56% 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 2.59% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 14.55% and Operating profit at -204.56% over the last 5 years
4
The company has declared Negative results for the last 6 consecutive quarters
- NET PROFIT(HY) At CNY -66.67 MM has Grown at -49.11%
- INTEREST(HY) At CNY 47.56 MM has Grown at 19.33%
- ROCE(HY) Lowest at -8.49%
5
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 23.51%, its profits have fallen by -47.6%
- At the current price, the company has a high dividend yield of 0
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Wenzhou Hongfeng Electrical Alloy Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Minerals & Mining should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Minerals & Mining)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Wenzhou Hongfeng Electrical Alloy Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Wenzhou Hongfeng Electrical Alloy Co., Ltd.
15.33%
1.56
49.92%
China Shanghai Composite
15.19%
1.01
15.10%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
14.55%
EBIT Growth (5y)
-204.56%
EBIT to Interest (avg)
0.74
Debt to EBITDA (avg)
14.12
Net Debt to Equity (avg)
2.03
Sales to Capital Employed (avg)
1.20
Tax Ratio
6.03%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.08%
ROE (avg)
2.59%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
1.67
EV to EBIT
-69.51
EV to EBITDA
40.38
EV to Capital Employed
1.22
EV to Sales
0.92
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-1.75%
ROE (Latest)
-12.66%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
NET SALES(HY)
At CNY 1,674.15 MM has Grown at 35.72%
DEBTORS TURNOVER RATIO(HY)
Highest at 8.53%
-18What is not working for the Company
NET PROFIT(HY)
At CNY -66.67 MM has Grown at -49.11%
INTEREST(HY)
At CNY 47.56 MM has Grown at 19.33%
ROCE(HY)
Lowest at -8.49%
DEBT-EQUITY RATIO
(HY)
Highest at 212.45 %
RAW MATERIAL COST(Y)
Grown by 12.56% (YoY
Here's what is working for Wenzhou Hongfeng Electrical Alloy Co., Ltd.
Net Sales
At CNY 1,674.15 MM has Grown at 35.72%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Debtors Turnover Ratio
Highest at 8.53%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Wenzhou Hongfeng Electrical Alloy Co., Ltd.
Net Profit
At CNY -66.67 MM has Grown at -49.11%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Interest
At CNY 47.56 MM has Grown at 19.33%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debt-Equity Ratio
Highest at 212.45 % 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
Raw Material Cost
Grown by 12.56% (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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