Wuxi Huaguang Environment & Energy Group Co., Ltd. (600475) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Wuxi Huaguang Environment & Energy Group Co., Ltd.

Why is Wuxi Huaguang Environment & Energy Group Co., Ltd. ?

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 5.83% and Operating profit at 27.07% 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 10.55% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 5.83% and Operating profit at 27.07% over the last 5 years

The company has declared Negative results for the last 12 consecutive quarters

NET SALES(Q) At CNY 1,949.45 MM has Fallen at -32.38%
ROCE(HY) Lowest at 7.4%
INTEREST COVERAGE RATIO(Q) Lowest at 438.88

With ROE of 8.89%, it has a fair valuation with a 1.64 Price to Book Value

Over the past year, while the stock has generated a return of 80.21%, its profits have fallen by -17.8%
At the current price, the company has a high dividend yield of 2.9

Market Beating Performance

The stock has generated a return of 80.21% in the last 1 year, much higher than market (China Shanghai Composite) returns of 14.77%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wuxi Huaguang Environment & Energy Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Wuxi Huaguang Environment & Energy Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wuxi Huaguang Environment & Energy Group Co., Ltd.

-100.0%

1.29

60.48%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.83%

EBIT Growth (5y)

27.07%

EBIT to Interest (avg)

4.14

Debt to EBITDA (avg)

2.78

Net Debt to Equity (avg)

0.50

Sales to Capital Employed (avg)

0.58

Tax Ratio

18.55%

Dividend Payout Ratio

61.08%

Pledged Shares

Institutional Holding

ROCE (avg)

6.17%

ROE (avg)

10.55%

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

1.64

EV to EBIT

27.45

EV to EBITDA

15.08

EV to Capital Employed

1.37

EV to Sales

2.75

PEG Ratio

Dividend Yield

2.90%

ROCE (Latest)

4.98%

ROE (Latest)

8.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,060.22 MM

RAW MATERIAL COST(Y)

Fallen by -32.02% (YoY

CASH AND EQV(HY)

Highest at CNY 7,022.69 MM

-20What is not working for the Company

NET SALES(Q)

At CNY 1,949.45 MM has Fallen at -32.38%

ROCE(HY)

Lowest at 7.4%

INTEREST COVERAGE RATIO(Q)

Lowest at 438.88

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.57%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.57%

OPERATING PROFIT(Q)

Lowest at CNY 196.06 MM

NET PROFIT(Q)

Fallen at -31.22%

Here's what is working for Wuxi Huaguang Environment & Energy Group Co., Ltd.

Operating Cash Flow

Highest at CNY 2,060.22 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 7,022.69 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -32.02% (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 Huaguang Environment & Energy Group Co., Ltd.

Net Sales

At CNY 1,949.45 MM has Fallen at -32.38%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 438.88

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 196.06 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Net Profit

Fallen at -31.22%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 6.57%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 1.57%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio