Wuxi Best Precision Machinery Co., Ltd. (300580) 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

Wuxi Best Precision Machinery Co., Ltd.

Why is Wuxi Best Precision Machinery Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 9.64% and Operating profit at 8.22% over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 106.39 MM
OPERATING PROFIT(Q) Lowest at CNY 85.25 MM
OPERATING PROFIT MARGIN(Q) Lowest at 21.09 %

With ROE of 9.25%, it has a attractive valuation with a 4.50 Price to Book Value

Over the past year, while the stock has generated a return of -33.33%, its profits have risen by 5.9%
At the current price, the company has a high dividend yield of 0.4

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.17% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -33.33% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wuxi Best Precision Machinery Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Wuxi Best Precision Machinery Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wuxi Best Precision Machinery Co., Ltd.

-32.61%

0.62

40.49%

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)

9.64%

EBIT Growth (5y)

8.22%

EBIT to Interest (avg)

78.51

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

0.44

Tax Ratio

10.75%

Dividend Payout Ratio

29.39%

Pledged Shares

Institutional Holding

ROCE (avg)

11.07%

ROE (avg)

9.93%

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

4.50

EV to EBIT

51.37

EV to EBITDA

29.98

EV to Capital Employed

5.68

EV to Sales

9.93

PEG Ratio

Dividend Yield

0.40%

ROCE (Latest)

11.06%

ROE (Latest)

9.25%

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

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

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.58% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 2.42 times

NET SALES(Q)

Highest at CNY 404.24 MM

PRE-TAX PROFIT(Q)

Highest at CNY 98.99 MM

NET PROFIT(Q)

Highest at CNY 88.18 MM

EPS(Q)

Highest at CNY 0.18

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 106.39 MM

OPERATING PROFIT(Q)

Lowest at CNY 85.25 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 21.09 %

Here's what is working for Wuxi Best Precision Machinery Co., Ltd.

Net Sales

Highest at CNY 404.24 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 404.24 MM has Grown at 17.5%

over average net sales of the previous four periods of CNY 344.03 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 98.99 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 88.18 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.18

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 2.42 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -2.58% (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 Wuxi Best Precision Machinery Co., Ltd.

Operating Cash Flow

Lowest at CNY 106.39 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 85.25 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 21.09 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales