Wuhan Zhongyuan Huadian Science & Technology Co., Ltd. (300018) 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 Zhongyuan Huadian Science & Technology Co., Ltd.

Why is Wuhan Zhongyuan Huadian Science & Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.39%

The company has been able to generate a Return on Capital Employed (avg) of 4.39% signifying low profitability per unit of total capital (equity and debt)

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at CNY 215.05 MM
NET PROFIT(HY) At CNY 66.91 MM has Grown at 55.5%
ROCE(HY) Highest at 10.31%

With ROE of 10.49%, it has a fair valuation with a 3.03 Price to Book Value

Over the past year, while the stock has generated a return of 86.96%, its profits have risen by 40.5% ; the PEG ratio of the company is 0.7
At the current price, the company has a high dividend yield of 0

Market Beating performance in long term as well as near term

Along with generating 86.96% 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 Wuhan Zhongyuan Huadian Science & Technology 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 Wuhan Zhongyuan Huadian Science & Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wuhan Zhongyuan Huadian Science & Technology Co., Ltd.

76.33%

4.05

50.44%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.25%

EBIT Growth (5y)

167.49%

EBIT to Interest (avg)

30.31

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

0.42

Tax Ratio

12.59%

Dividend Payout Ratio

34.89%

Pledged Shares

Institutional Holding

ROCE (avg)

4.39%

ROE (avg)

4.40%

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

3.03

EV to EBIT

28.14

EV to EBITDA

26.26

EV to Capital Employed

4.25

EV to Sales

5.65

PEG Ratio

0.71

Dividend Yield

ROCE (Latest)

15.11%

ROE (Latest)

10.49%

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 Bearish

Mildly Bullish

OBV

Mildly Bullish

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

OPERATING CASH FLOW(Y)

Highest at CNY 215.05 MM

NET PROFIT(HY)

At CNY 66.91 MM has Grown at 55.5%

ROCE(HY)

Highest at 10.31%

DEBTORS TURNOVER RATIO(HY)

Highest at 3.54 times

NET SALES(Q)

At CNY 123.53 MM has Grown at 24.16%

-11What is not working for the Company

INTEREST(HY)

At CNY 0.04 MM has Grown at 568.43%

INTEREST COVERAGE RATIO(Q)

Lowest at 129,491.25

RAW MATERIAL COST(Y)

Grown by 6.18% (YoY

Here's what is working for Wuhan Zhongyuan Huadian Science & Technology Co., Ltd.

Net Profit

At CNY 66.91 MM has Grown at 55.5%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 215.05 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 123.53 MM has Grown at 24.16%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 3.54 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 Zhongyuan Huadian Science & Technology Co., Ltd.

Interest

At CNY 0.04 MM has Grown at 568.43%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 129,491.25

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Raw Material Cost

Grown by 6.18% (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