Wuxi Huaguang Environment & Energy Group Co., Ltd.

  • Market Cap: Large Cap
  • Industry: Electronics & Appliances
  • ISIN: CNE000001FD7
CNY
17.96
-0.72 (-3.85%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Wuxi Huaguang Environment & Energy Group Co., Ltd.

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
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Wuxi Huaguang Environment & Energy Group Co., Ltd. should be less than 10%
  2. 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.
92.91%
1.68
67.49%
China Shanghai Composite
15.17%
1.58
14.20%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
5.49%
EBIT Growth (5y)
22.78%
EBIT to Interest (avg)
4.14
Debt to EBITDA (avg)
2.78
Net Debt to Equity (avg)
0.50
Sales to Capital Employed (avg)
0.56
Tax Ratio
18.55%
Dividend Payout Ratio
61.08%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.17%
ROE (avg)
10.55%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
1.64
EV to EBIT
27.46
EV to EBITDA
15.09
EV to Capital Employed
1.37
EV to Sales
2.75
PEG Ratio
NA
Dividend Yield
2.90%
ROCE (Latest)
4.98%
ROE (Latest)
8.89%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company
OPERATING CASH FLOW(Y)

Highest at CNY 1,856.66 MM

NET SALES(Q)

At CNY 2,245.48 MM has Grown at 52.33%

DIVIDEND PAYOUT RATIO(Y)

Highest at 162.6%

-20What is not working for the Company
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

INTEREST COVERAGE RATIO(Q)

Lowest at 241.51

RAW MATERIAL COST(Y)

Grown by 25.8% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 73 %

OPERATING PROFIT(Q)

Lowest at CNY 126.66 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.64 %

NET PROFIT(Q)

Lowest at CNY 59.13 MM

EPS(Q)

Lowest at CNY 0.06

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

Net Sales
At CNY 2,245.48 MM has Grown at 52.33%
Year on Year (YoY)
MOJO Watch
Near term sales trend is very positive

Net Sales (CNY MM)

Operating Cash Flow
Highest at CNY 1,856.66 MM
in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Dividend Payout Ratio
Highest at 162.6%
in the last five years
MOJO Watch
Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Wuxi Huaguang Environment & Energy Group Co., Ltd.

Interest
At CNY 113.27 MM has Grown at 10.66%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio
Lowest at 241.51
in the last five periods
MOJO Watch
The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio
Lowest at 6.17 times and Fallen
In each half year in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit
Lowest at CNY 126.66 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin
Lowest at 5.64 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit
Lowest at CNY 59.13 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit
Fallen at -29.28%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS
Lowest at CNY 0.06
in the last five periods
MOJO Watch
Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio
Highest at 73 %
in the last five Semi-Annual periods
MOJO 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 25.8% (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