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
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
3
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
4
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
5
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 216.01%, 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 ReportHow much should you buy?
- 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.
98.75%
5.12
70.32%
China Shanghai Composite
3.23%
1.20
14.07%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.27%
EBIT Growth (5y)
17.10%
EBIT to Interest (avg)
0.85
Debt to EBITDA (avg)
11.15
Net Debt to Equity (avg)
2.03
Sales to Capital Employed (avg)
1.30
Tax Ratio
42.07%
Dividend Payout Ratio
27.32%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.03%
ROE (avg)
2.59%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
112
Industry P/E
Price to Book Value
8.86
EV to EBIT
60.22
EV to EBITDA
40.34
EV to Capital Employed
4.44
EV to Sales
2.75
PEG Ratio
0.60
Dividend Yield
0.06%
ROCE (Latest)
7.37%
ROE (Latest)
7.89%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend39What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 37.84 MM
NET PROFIT(HY)
Higher at CNY 92.35 MM
ROCE(HY)
Highest at 11.8%
INVENTORY TURNOVER RATIO(HY)
Highest at 4.13 times
DEBTORS TURNOVER RATIO(HY)
Highest at 9.51 times
RAW MATERIAL COST(Y)
Fallen by -0.45% (YoY
NET SALES(Q)
Highest at CNY 1,556.77 MM
OPERATING PROFIT(Q)
Highest at CNY 100.98 MM
-2What is not working for the Company
INTEREST(Q)
At CNY 19.41 MM has Grown at 30%
Here's what is working for Wenzhou Hongfeng Electrical Alloy Co., Ltd.
Net Profit
At CNY 92.35 MM has Grown at 1,084.02%
Year on Year (YoY)MOJO Watch
Net Profit trend is very positive
Net Profit (CNY MM)
Operating Cash Flow
Highest at CNY 37.84 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Sales
At CNY 1,556.77 MM has Grown at 45.76%
over average net sales of the previous four periods of CNY 1,068.06 MMMOJO Watch
Near term sales trend is very positive
Net Sales (CNY MM)
Net Profit
Higher at CNY 92.35 MM
than preceding 12 month period ended Jun 2026MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (CNY MM)
Inventory Turnover Ratio
Highest at 4.13 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 9.51 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Net Sales
Highest at CNY 1,556.77 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Operating Profit
Highest at CNY 100.98 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CNY MM)
Inventory Turnover Ratio
Highest at 4.13 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 9.51 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -0.45% (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
Depreciation
Highest at CNY 36.41 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (CNY MM)
Depreciation
At CNY 36.41 MM has Grown at inf%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (CNY MM)
Here's what is not working for Wenzhou Hongfeng Electrical Alloy Co., Ltd.
Interest
At CNY 19.41 MM has Grown at 30%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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