ScoreWhy is Wuxi Hongsheng Heat Exchanger Manufacturing Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 8.38%
- The company has been able to generate a Return on Capital Employed (avg) of 8.38% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 17.85% and Operating profit at 42.96% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 7.16% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 17.85% and Operating profit at 42.96% over the last 5 years
4
Negative results in Jun 26
- INTEREST(HY) At CNY 2.42 MM has Grown at 34.2%
- OPERATING CASH FLOW(Y) Lowest at CNY 91.55 MM
- INTEREST COVERAGE RATIO(Q) Lowest at 2,479.89
5
With ROE of 11.28%, it has a expensive valuation with a 7.96 Price to Book Value
- Over the past year, while the stock has generated a return of -9.46%, its profits have risen by 28.5% ; the PEG ratio of the company is 2.5
- At the current price, the company has a high dividend yield of 0.2
Real-Time Research ReportHow 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.
-7.61%
1.19
76.08%
China Shanghai Composite
3.23%
0.23
14.72%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
17.85%
EBIT Growth (5y)
42.96%
EBIT to Interest (avg)
16.70
Debt to EBITDA (avg)
0.24
Net Debt to Equity (avg)
-0.11
Sales to Capital Employed (avg)
1.00
Tax Ratio
16.01%
Dividend Payout Ratio
36.42%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.29%
ROE (avg)
7.16%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
71
Industry P/E
Price to Book Value
7.96
EV to EBIT
62.19
EV to EBITDA
48.27
EV to Capital Employed
7.92
EV to Sales
6.43
PEG Ratio
2.47
Dividend Yield
0.24%
ROCE (Latest)
12.73%
ROE (Latest)
11.28%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 3.06 times
NET SALES(Q)
Highest at CNY 238.15 MM
-19What is not working for the Company
INTEREST(HY)
At CNY 2.42 MM has Grown at 34.2%
OPERATING CASH FLOW(Y)
Lowest at CNY 91.55 MM
INTEREST COVERAGE RATIO(Q)
Lowest at 2,479.89
RAW MATERIAL COST(Y)
Grown by 7.9% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 6.28 %
NET PROFIT(Q)
Lowest at CNY 13.12 MM
EPS(Q)
Lowest at CNY 0.13
Here's what is working for Wuxi Hongsheng Heat Exchanger Manufacturing Co., Ltd.
Net Sales
Highest at CNY 238.15 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Net Sales
At CNY 238.15 MM has Grown at 17.99%
over average net sales of the previous four periods of CNY 201.84 MMMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Debtors Turnover Ratio
Highest at 3.06 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Wuxi Hongsheng Heat Exchanger Manufacturing Co., Ltd.
Interest
At CNY 2.42 MM has Grown at 34.2%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Interest Coverage Ratio
Lowest at 2,479.89
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Cash Flow
Lowest at CNY 91.55 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Net Profit
Lowest at CNY 13.12 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
Net Profit
At CNY 13.12 MM has Fallen at -29.83%
over average net sales of the previous four periods of CNY 18.7 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
EPS
Lowest at CNY 0.13
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)
Debt-Equity Ratio
Highest at 6.28 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 7.9% (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
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