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.

-9.9%

-0.06

37.94%

China Shanghai Composite

21.43%

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)

-20.46%

EBIT Growth (5y)

-21.89%

EBIT to Interest (avg)

2.24

Debt to EBITDA (avg)

5.23

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

0.43

Tax Ratio

27.45%

Dividend Payout Ratio

64.09%

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

0.96

EV to EBIT

41.63

EV to EBITDA

23.77

EV to Capital Employed

0.98

EV to Sales

3.59

PEG Ratio

Dividend Yield

1.66%

ROCE (Latest)

2.34%

ROE (Latest)

3.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.76% (YoY

-26What is not working for the Company

ROCE(HY)

Lowest at 3.09%

INTEREST COVERAGE RATIO(Q)

Lowest at 73.55

CASH AND EQV(HY)

Lowest at CNY 3,858.37 MM

DEBT-EQUITY RATIO (HY)

Highest at 49.33 %

NET SALES(Q)

Lowest at CNY 387.13 MM

OPERATING PROFIT(Q)

Lowest at CNY 29.64 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.66 %

PRE-TAX PROFIT(Q)

Lowest at CNY 7.5 MM

NET PROFIT(Q)

Lowest at CNY -9.52 MM

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

Raw Material Cost

Fallen by -1.76% (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 Wuhan East Lake High Technology Group Co., Ltd.

Pre-Tax Profit

At CNY 7.5 MM has Fallen at -66.39%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -9.52 MM has Fallen at -161.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 73.55

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 387.13 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -10.6%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 29.64 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.66 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 7.5 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -9.52 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Cash and Eqv

Lowest at CNY 3,858.37 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 49.33 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income

Highest at CNY 0.88 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income