Wenzhou Yihua Connector Co., Ltd. (002897) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Wenzhou Yihua Connector Co., Ltd.

Why is Wenzhou Yihua Connector Co., Ltd. ?

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 17.76% and Operating profit at -1.40% 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 9.33% signifying low profitability per unit of shareholders funds
OPERATING CASH FLOW(Y) Highest at CNY 755.43 MM
RAW MATERIAL COST(Y) Fallen by -7.8% (YoY)
CASH AND EQV(HY) Highest at CNY 2,086.99 MM

With ROE of 5.36%, it has a very expensive valuation with a 3.44 Price to Book Value

Over the past year, while the stock has generated a return of 10.58%, its profits have fallen by -39.4%
At the current price, the company has a high dividend yield of 0.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wenzhou Yihua Connector 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 Wenzhou Yihua Connector Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Wenzhou Yihua Connector Co., Ltd.

13.81%

0.58

42.59%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.76%

EBIT Growth (5y)

-1.40%

EBIT to Interest (avg)

2.84

Debt to EBITDA (avg)

3.34

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

1.22

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

14.74%

Pledged Shares

Institutional Holding

ROCE (avg)

7.22%

ROE (avg)

9.33%

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

3.44

EV to EBIT

61.38

EV to EBITDA

26.09

EV to Capital Employed

2.55

EV to Sales

1.78

PEG Ratio

Dividend Yield

0.19%

ROCE (Latest)

4.16%

ROE (Latest)

5.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 755.43 MM

RAW MATERIAL COST(Y)

Fallen by -7.8% (YoY

CASH AND EQV(HY)

Highest at CNY 2,086.99 MM

DEBT-EQUITY RATIO (HY)

Lowest at 49.35 %

PRE-TAX PROFIT(Q)

At CNY 79.68 MM has Grown at 106.72%

NET PROFIT(Q)

At CNY 64.62 MM has Grown at 105.03%

-15What is not working for the Company

NET PROFIT(HY)

At CNY -40.98 MM has Grown at -136.27%

NET SALES(HY)

At CNY 2,700.24 MM has Grown at -11.21%

ROCE(HY)

Lowest at 4.21%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.81%

Here's what is working for Wenzhou Yihua Connector Co., Ltd.

Operating Cash Flow

Highest at CNY 755.43 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 79.68 MM has Grown at 106.72%

over average net sales of the previous four periods of CNY 38.54 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 64.62 MM has Grown at 105.03%

over average net sales of the previous four periods of CNY 31.52 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 2,086.99 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 49.35 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -7.8% (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 Wenzhou Yihua Connector Co., Ltd.

Debtors Turnover Ratio

Lowest at 3.81% and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

At CNY 1,357.11 MM has Fallen at -10.55%

over average net sales of the previous four periods of CNY 1,517.24 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)