Why is Wuxi Huaguang Environment & Energy Group Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 6.17%
- The company has been able to generate a Return on Capital Employed (avg) of 6.17% 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 0.94% and Operating profit at 3.51% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 10.55% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 0.94% and Operating profit at 3.51% over the last 5 years
4
The company has declared Negative results for the last 18 consecutive quarters
- NET PROFIT(9M) At CNY 324.05 MM has Grown at -36.1%
- ROCE(HY) Lowest at 4.38%
- DEBT-EQUITY RATIO (HY) Highest at 87.36 %
5
With ROE of 6.00%, 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 -8.86%, its profits have fallen by -39.3%
- At the current price, the company has a high dividend yield of 4.7
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 Electronics & Appliances)
When to re-enter? - We will constantly monitor the company and review our call based on new data
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.
-8.86%
0.93
58.21%
China Shanghai Composite
3.23%
0.22
14.72%
Quality key factors
Factor
Value
Sales Growth (5y)
0.94%
EBIT Growth (5y)
3.51%
EBIT to Interest (avg)
3.52
Debt to EBITDA (avg)
3.41
Net Debt to Equity (avg)
0.50
Sales to Capital Employed (avg)
0.53
Tax Ratio
30.97%
Dividend Payout Ratio
86.33%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.08%
ROE (avg)
10.55%
Valuation Key Factors 
Factor
Value
P/E Ratio
27
Industry P/E
Price to Book Value
1.64
EV to EBIT
31.08
EV to EBITDA
17.77
EV to Capital Employed
1.38
EV to Sales
2.21
PEG Ratio
NA
Dividend Yield
4.66%
ROCE (Latest)
4.45%
ROE (Latest)
6.00%
Technical 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
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 1,402.48 MM
RAW MATERIAL COST(Y)
Fallen by -12.19% (YoY
CASH AND EQV(HY)
Highest at CNY 8,025.62 MM
NET PROFIT(Q)
Highest at CNY 166.23 MM
EPS(Q)
Highest at CNY 0.17
-18What is not working for the Company
NET PROFIT(9M)
At CNY 324.05 MM has Grown at -36.1%
ROCE(HY)
Lowest at 4.38%
DEBT-EQUITY RATIO
(HY)
Highest at 87.36 %
NET SALES(Q)
Lowest at CNY 1,747.88 MM
INTEREST(Q)
Highest at CNY 63.45 MM
Here's what is working for Wuxi Huaguang Environment & Energy Group Co., Ltd.
Operating Cash Flow
Highest at CNY 1,402.48 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Profit
Highest at CNY 166.23 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.17
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Cash and Eqv
Highest at CNY 8,025.62 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -12.19% (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 1,747.88 MM has Fallen at -28.71%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Net Sales
Lowest at CNY 1,747.88 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Interest
Highest at CNY 63.45 MM
in the last five periods and Increased by 9.76% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debt-Equity Ratio
Highest at 87.36 %
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
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