Wuhan East Lake High Technology Group Co., Ltd. (600133) 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

Wuhan East Lake High Technology Group Co., Ltd.

Why is Wuhan East Lake High Technology 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 -18.09% and Operating profit at -5.67% 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 12.13% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -18.09% and Operating profit at -5.67% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

NET PROFIT(Q) At CNY 22.35 MM has Fallen at -82.61%
ROCE(HY) Lowest at 4.45%
INTEREST COVERAGE RATIO(Q) Lowest at 104.38

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -1.89% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Wuhan East Lake High Technology Group Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Wuhan East Lake High Technology Group Co., Ltd.

-11.24%

-0.06

37.94%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-18.09%

EBIT Growth (5y)

-5.67%

EBIT to Interest (avg)

2.24

Debt to EBITDA (avg)

5.23

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

0.52

Tax Ratio

27.45%

Dividend Payout Ratio

33.31%

Pledged Shares

Institutional Holding

ROCE (avg)

6.52%

ROE (avg)

12.13%

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

1.16

EV to EBIT

23.55

EV to EBITDA

15.78

EV to Capital Employed

1.11

EV to Sales

3.95

PEG Ratio

Dividend Yield

1.44%

ROCE (Latest)

4.72%

ROE (Latest)

5.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 985.46 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 1.62 times

NET SALES(Q)

At CNY 579 MM has Grown at 34.16%

-23What is not working for the Company

NET PROFIT(Q)

At CNY 22.35 MM has Fallen at -82.61%

ROCE(HY)

Lowest at 4.45%

INTEREST COVERAGE RATIO(Q)

Lowest at 104.38

OPERATING PROFIT MARGIN(Q)

Lowest at 6.84 %

RAW MATERIAL COST(Y)

Grown by 12.84% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 39.59 MM

PRE-TAX PROFIT(Q)

Lowest at CNY 17.02 MM

Here's what is working for Wuhan East Lake High Technology Group Co., Ltd.

Operating Cash Flow

Highest at CNY 985.46 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

At CNY 579 MM has Grown at 34.16%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 1.62 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Wuhan East Lake High Technology Group Co., Ltd.

Pre-Tax Profit

At CNY 17.02 MM has Fallen at -62.99%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 22.35 MM has Fallen at -82.61%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 104.38

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 6.84 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at CNY 39.59 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY 17.02 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Raw Material Cost

Grown by 12.84% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales