Wuxi Hodgen Technology Co., Ltd. (300279) 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 Hodgen Technology Co., Ltd.

Why is Wuxi Hodgen Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.37%

The company has been able to generate a Return on Capital Employed (avg) of 3.37% signifying low profitability per unit of total capital (equity and debt)

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 3.20% and Operating profit at -1.05% 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 3.30% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.20% and Operating profit at -1.05% over the last 5 years

Flat results in Sep 25

NET PROFIT(HY) At CNY 27.13 MM has Grown at -39.16%
INTEREST(Q) At CNY 2.13 MM has Grown at 487.38%
NET SALES(Q) Lowest at CNY 402.92 MM

With ROE of 7.16%, it has a expensive valuation with a 3.59 Price to Book Value

Over the past year, while the stock has generated a return of 53.37%, its profits have risen by 32.9% ; the PEG ratio of the company is 1.5

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 Other Electrical Equipment)

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

Is Wuxi Hodgen Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wuxi Hodgen Technology Co., Ltd.

56.25%

3.04

47.77%

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)

3.20%

EBIT Growth (5y)

-1.05%

EBIT to Interest (avg)

0.91

Debt to EBITDA (avg)

4.12

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.24

Tax Ratio

14.95%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.37%

ROE (avg)

3.30%

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

3.59

EV to EBIT

64.65

EV to EBITDA

35.15

EV to Capital Employed

3.56

EV to Sales

1.90

PEG Ratio

1.52

Dividend Yield

ROCE (Latest)

5.50%

ROE (Latest)

7.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

5What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -6.05 %

RAW MATERIAL COST(Y)

Fallen by -11.95% (YoY

NET PROFIT(9M)

Higher at CNY 65.49 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.83 times

-15What is not working for the Company

NET PROFIT(HY)

At CNY 27.13 MM has Grown at -39.16%

INTEREST(Q)

At CNY 2.13 MM has Grown at 487.38%

NET SALES(Q)

Lowest at CNY 402.92 MM

Here's what is working for Wuxi Hodgen Technology Co., Ltd.

Debt-Equity Ratio

Lowest at -6.05 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 2.83 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 -11.95% (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 Hodgen Technology Co., Ltd.

Net Sales

At CNY 402.92 MM has Fallen at -16.5%

over average net sales of the previous four periods of CNY 482.57 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Profit

At CNY 27.13 MM has Grown at -39.16%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 2.13 MM has Grown at 487.38%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 402.92 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)