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

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 15.52% and Operating profit at -1.25% 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

With a growth in Net Sales of 13.74%, the company declared Very Positive results in Sep 25

The company has declared positive results in Jan 70 after 2 consecutive negative quarters
RAW MATERIAL COST(Y) Fallen by 1.03% (YoY)
NET SALES(Q) Highest at CNY 1,910.61 MM
PRE-TAX PROFIT(Q) Highest at CNY 136.08 MM

With ROE of 5.36%, it has a very expensive valuation with a 3.45 Price to Book Value

Over the past year, while the stock has generated a return of 41.95%, its profits have fallen by -39.4%
At the current price, the company has a high dividend yield of 0.2

Market Beating performance in long term as well as near term

Along with generating 41.95% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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, High Return

Absolute

Risk Adjusted

Volatility

Wenzhou Yihua Connector Co., Ltd.

41.45%

1.07

45.53%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.52%

EBIT Growth (5y)

-1.25%

EBIT to Interest (avg)

2.84

Debt to EBITDA (avg)

3.34

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

1.21

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

3.45

EV to EBIT

61.61

EV to EBITDA

26.19

EV to Capital Employed

2.56

EV to Sales

1.79

PEG Ratio

Dividend Yield

0.19%

ROCE (Latest)

4.16%

ROE (Latest)

5.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

15What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.03% (YoY

NET SALES(Q)

Highest at CNY 1,910.61 MM

PRE-TAX PROFIT(Q)

Highest at CNY 136.08 MM

NET PROFIT(Q)

Highest at CNY 107.82 MM

EPS(Q)

Highest at CNY 0.57

-2What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.32 times

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

Pre-Tax Profit

At CNY 136.08 MM has Grown at 266.81%

over average net sales of the previous four periods of CNY 37.1 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 107.82 MM has Grown at 276.97%

over average net sales of the previous four periods of CNY 28.6 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 1,910.61 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 1,910.61 MM has Grown at 28.01%

over average net sales of the previous four periods of CNY 1,492.51 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 136.08 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 107.82 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.57

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by 1.03% (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 3.32 times 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