Wolong Electric Group Co. Ltd. (600580) 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

Wolong Electric Group Co. Ltd.

Why is Wolong Electric Group 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 5.69% and Operating profit at 1.60% 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 9.12% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 5.69% and Operating profit at 1.60% over the last 5 years

Flat results in Jun 25

NET SALES(Q) Lowest at CNY 3,965.69 MM

With ROE of 8.33%, it has a fair valuation with a 7.88 Price to Book Value

Over the past year, while the stock has generated a return of 227.91%, its profits have risen by 195.4% ; the PEG ratio of the company is 0.7
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 227.91% 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 Wolong Electric Group 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 Wolong Electric Group Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wolong Electric Group Co. Ltd.

232.02%

3.37

66.06%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.69%

EBIT Growth (5y)

1.60%

EBIT to Interest (avg)

3.69

Debt to EBITDA (avg)

2.83

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

0.91

Tax Ratio

16.52%

Dividend Payout Ratio

20.54%

Pledged Shares

Institutional Holding

ROCE (avg)

7.16%

ROE (avg)

9.12%

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

7.88

EV to EBIT

83.62

EV to EBITDA

47.88

EV to Capital Employed

6.22

EV to Sales

5.29

PEG Ratio

0.65

Dividend Yield

0.20%

ROCE (Latest)

7.44%

ROE (Latest)

8.33%

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

Mildly Bullish

No Trend

OBV

Mildly Bullish

Mildly Bearish

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,913.07 MM

RAW MATERIAL COST(Y)

Fallen by -1.18% (YoY

NET PROFIT(9M)

Higher at CNY 605.47 MM

CASH AND EQV(HY)

Highest at CNY 7,273.3 MM

DEBT-EQUITY RATIO (HY)

Lowest at 32.53 %

INVENTORY TURNOVER RATIO(HY)

Highest at 3.64%

EPS(Q)

Highest at CNY 0.17

-2What is not working for the Company

NET SALES(Q)

Lowest at CNY 3,965.69 MM

Here's what is working for Wolong Electric Group Co. Ltd.

Net Profit

At CNY 605.47 MM has Grown at 1,583.77%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 1,913.07 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

EPS

Highest at CNY 0.17

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 7,273.3 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 32.53 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 3.64%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Profit

Higher at CNY 605.47 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost

Fallen by -1.18% (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 Wolong Electric Group Co. Ltd.

Net Sales

Lowest at CNY 3,965.69 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)