Why is Wuxi Huadong Heavy Machinery Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 0.74%
- The company has been able to generate a Return on Capital Employed (avg) of 0.74% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of -40.19% and Operating profit at -180.60% over the last 5 years
3
With a fall in Net Sales of -30.33%, the company declared Very Negative results in Mar 25
- The company has declared negative results in Jan 70 after 4 consecutive negative quarters
- NET SALES(Q) At CNY 213.1 MM has Fallen at -27.63%
4
Underperformed the market in the last 1 year
- Even though the market (China Shanghai Composite) has generated returns of 15.18% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -0.13% returns
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 Huadong Heavy Machinery Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Wuxi Huadong Heavy Machinery Co., Ltd.
3.85%
3.80
55.31%
China Shanghai Composite
15.19%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
-40.19%
EBIT Growth (5y)
-180.60%
EBIT to Interest (avg)
-15.74
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.38
Sales to Capital Employed (avg)
0.53
Tax Ratio
29.34%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0.74%
ROE (avg)
1.90%
Valuation Key Factors 
Factor
Value
P/E Ratio
89
Industry P/E
Price to Book Value
4.53
EV to EBIT
-50.01
EV to EBITDA
-99.15
EV to Capital Employed
6.66
EV to Sales
6.57
PEG Ratio
0.75
Dividend Yield
NA
ROCE (Latest)
-13.31%
ROE (Latest)
5.06%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
21What is working for the Company
NET SALES(HY)
At CNY 464.04 MM has Grown at 53.09%
NET PROFIT(HY)
Higher at CNY 122.32 MM
ROCE(HY)
Highest at 9.05%
RAW MATERIAL COST(Y)
Fallen by -384.99% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at -38.09 %
DEBTORS TURNOVER RATIO(HY)
Highest at 3.88%
-5What is not working for the Company
NET SALES(Q)
At CNY 213.1 MM has Fallen at -27.63%
Here's what is working for Wuxi Huadong Heavy Machinery Co., Ltd.
Net Profit
At CNY 122.32 MM has Grown at 135.68%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Net Profit
Higher at CNY 122.32 MM
than preceding 12 month period ended Mar 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (CNY MM)
Debt-Equity Ratio
Lowest at -38.09 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 3.88%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -384.99% (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 Huadong Heavy Machinery Co., Ltd.
Net Sales
At CNY 213.1 MM has Fallen at -27.63%
over average net sales of the previous four periods of CNY 294.46 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)






