Why is Wuxi Huaguang Environment & Energy Group Co., Ltd. ?
1
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 5.49% and Operating profit at 22.78% 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
2
Poor long term growth as Net Sales has grown by an annual rate of 5.49% and Operating profit at 22.78% over the last 5 years
3
The company has declared Negative results for the last 12 consecutive quarters
- INTEREST(HY) At CNY 113.27 MM has Grown at 10.66%
- ROCE(HY) Lowest at 6.58%
- INVENTORY TURNOVER RATIO(HY) Lowest at 6.17 times
4
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 132.88%, its profits have fallen by -17.8%
- At the current price, the company has a high dividend yield of 2.9
5
Market Beating performance in long term as well as near term
- Along with generating 132.88% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
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.
38.53%
1.68
67.49%
China Shanghai Composite
21.43%
1.58
14.20%
Quality key factors
Factor
Value
Sales Growth (5y)
0.94%
EBIT Growth (5y)
3.51%
EBIT to Interest (avg)
4.14
Debt to EBITDA (avg)
2.78
Net Debt to Equity (avg)
0.50
Sales to Capital Employed (avg)
0.53
Tax Ratio
18.55%
Dividend Payout Ratio
86.33%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.17%
ROE (avg)
10.55%
Valuation Key Factors 
Factor
Value
P/E Ratio
28
Industry P/E
Price to Book Value
1.68
EV to EBIT
31.58
EV to EBITDA
18.06
EV to Capital Employed
1.41
EV to Sales
2.25
PEG Ratio
NA
Dividend Yield
2.93%
ROCE (Latest)
4.45%
ROE (Latest)
6.00%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Movement
4What is working for the Company
NET SALES(9M)
At CNY 6,561.34 MM has Grown at 23.34%
RAW MATERIAL COST(Y)
Fallen by -19.29% (YoY
CASH AND EQV(HY)
Highest at CNY 8,092.61 MM
-15What is not working for the Company
NET PROFIT(HY)
At CNY 157.82 MM has Grown at -55.03%
INTEREST COVERAGE RATIO(Q)
Lowest at 363.21
ROCE(HY)
Lowest at 4.25%
NET SALES(Q)
Lowest at CNY 1,839 MM
OPERATING PROFIT(Q)
Lowest at CNY 209.96 MM
Here's what is working for Wuxi Huaguang Environment & Energy Group Co., Ltd.
Cash and Eqv
Highest at CNY 8,092.61 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -19.29% (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 Profit
At CNY 157.82 MM has Grown at -55.03%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Interest Coverage Ratio
Lowest at 363.21 and Fallen
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales
Lowest at CNY 1,839 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY 209.96 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)






