Wenzhou Hongfeng Electrical Alloy Co., Ltd. (300283) 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

Wenzhou Hongfeng Electrical Alloy Co., Ltd.

Why is Wenzhou Hongfeng Electrical Alloy Co., Ltd. ?

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)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 16.27% and Operating profit at 17.10% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 2.59% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 16.27% and Operating profit at 17.10% over the last 5 years

With a growth in Net Profit of 320.57%, the company declared Outstanding results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 95.7 MM
ROCE(HY) Highest at 9.53%
PRE-TAX PROFIT(Q) Highest at CNY 68.26 MM

With ROE of 7.89%, it has a very expensive valuation with a 3.06 Price to Book Value

Over the past year, while the stock has generated a return of 260.37%, its profits have risen by 186.2% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How 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.

248.42%

5.97

69.67%

China Shanghai Composite

20.18%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.27%

EBIT Growth (5y)

17.10%

EBIT to Interest (avg)

0.74

Debt to EBITDA (avg)

14.12

Net Debt to Equity (avg)

2.03

Sales to Capital Employed (avg)

1.26

Tax Ratio

6.03%

Dividend Payout Ratio

27.32%

Pledged Shares

Institutional Holding

ROCE (avg)

3.08%

ROE (avg)

2.59%

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

3.06

EV to EBIT

25.78

EV to EBITDA

17.27

EV to Capital Employed

1.90

EV to Sales

1.18

PEG Ratio

0.21

Dividend Yield

ROCE (Latest)

7.37%

ROE (Latest)

7.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

36What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 95.7 MM

ROCE(HY)

Highest at 9.53%

PRE-TAX PROFIT(Q)

Highest at CNY 68.26 MM

RAW MATERIAL COST(Y)

Fallen by -49.13% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 11.02 times

NET SALES(Q)

Highest at CNY 1,429.46 MM

NET PROFIT(Q)

Highest at CNY 56.3 MM

EPS(Q)

Highest at CNY 0.11

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Wenzhou Hongfeng Electrical Alloy Co., Ltd.

Pre-Tax Profit

At CNY 68.26 MM has Grown at 511.19%

over average net sales of the previous four periods of CNY 11.17 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 56.3 MM has Grown at 669.08%

over average net sales of the previous four periods of CNY 7.32 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 1,429.46 MM has Grown at 59.75%

over average net sales of the previous four periods of CNY 894.79 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 68.26 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Highest at CNY 95.7 MM

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 1,429.46 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

Highest at CNY 56.3 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.11

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 11.02 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 -49.13% (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