Wuxi Hongsheng Heat Exchanger Manufacturing Co., Ltd. (603090) 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 Hongsheng Heat Exchanger Manufacturing Co., Ltd.

Why is Wuxi Hongsheng Heat Exchanger Manufacturing Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 15.75% and Operating profit at 20.54% over the last 5 years

With ROE of 10.75%, it has a fair valuation with a 10.08 Price to Book Value

Over the past year, while the stock has generated a return of 294.98%, its profits have risen by 33.9% ; the PEG ratio of the company is 2.8
At the current price, the company has a high dividend yield of 0.5

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 Industrial Manufacturing)

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

Is Wuxi Hongsheng Heat Exchanger Manufacturing Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wuxi Hongsheng Heat Exchanger Manufacturing Co., Ltd.

145.02%

3.71

67.79%

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)

17.85%

EBIT Growth (5y)

42.96%

EBIT to Interest (avg)

13.99

Debt to EBITDA (avg)

0.23

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

1.00

Tax Ratio

16.83%

Dividend Payout Ratio

36.42%

Pledged Shares

Institutional Holding

ROCE (avg)

8.38%

ROE (avg)

7.16%

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

3.76

EV to EBIT

29.42

EV to EBITDA

22.83

EV to Capital Employed

3.74

EV to Sales

3.04

PEG Ratio

1.17

Dividend Yield

1.22%

ROCE (Latest)

12.73%

ROE (Latest)

11.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

3What is working for the Company

ROCE(HY)

Highest at 12.15%

RAW MATERIAL COST(Y)

Fallen by -4.67% (YoY

-20What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,983.44

OPERATING PROFIT(Q)

Lowest at CNY 23.66 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.77 %

DEBT-EQUITY RATIO (HY)

Highest at 3.13 %

INTEREST(Q)

Highest at CNY 1.19 MM

NET PROFIT(Q)

Lowest at CNY 17.24 MM

EPS(Q)

Lowest at CNY 0.17

Here's what is working for Wuxi Hongsheng Heat Exchanger Manufacturing Co., Ltd.

Raw Material Cost

Fallen by -4.67% (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 Hongsheng Heat Exchanger Manufacturing Co., Ltd.

Interest Coverage Ratio

Lowest at 1,983.44 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 1.19 MM has Grown at 15.29%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 23.66 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 11.77 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Interest

Highest at CNY 1.19 MM

in the last five periods and Increased by 15.29% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

Lowest at CNY 17.24 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.17

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 3.13 %

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