Wuxi New Hongtai Electrical Technology Co., Ltd. (603016) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Wuxi New Hongtai Electrical Technology Co., Ltd.

Why is Wuxi New Hongtai Electrical Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 7.29% and Operating profit at 1.59% over the last 5 years

Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 76.83 MM
ROCE(HY) Lowest at 8.02%
RAW MATERIAL COST(Y) Grown by 5.98% (YoY)

With ROE of 8.58%, it has a very expensive valuation with a 5.16 Price to Book Value

Over the past year, while the stock has generated a return of -9.44%, its profits have fallen by -8.8%
At the current price, the company has a high dividend yield of 1.7

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.44% returns

Real-Time Research Report

Verdict Report

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 New Hongtai Electrical Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wuxi New Hongtai Electrical Technology Co., Ltd.

31.0%

2.47

38.42%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.29%

EBIT Growth (5y)

1.59%

EBIT to Interest (avg)

60.33

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.34

Sales to Capital Employed (avg)

0.74

Tax Ratio

12.50%

Dividend Payout Ratio

99.22%

Pledged Shares

Institutional Holding

ROCE (avg)

13.00%

ROE (avg)

8.35%

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

5.16

EV to EBIT

55.91

EV to EBITDA

41.93

EV to Capital Employed

12.04

EV to Sales

5.95

PEG Ratio

Dividend Yield

1.67%

ROCE (Latest)

21.54%

ROE (Latest)

8.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Bullish

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

2What is working for the Company

CASH AND EQV(HY)

Highest at CNY 1,066.6 MM

DEBT-EQUITY RATIO (HY)

Lowest at -65.51 %

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 76.83 MM

ROCE(HY)

Lowest at 8.02%

RAW MATERIAL COST(Y)

Grown by 5.98% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 14.82 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.41 %

PRE-TAX PROFIT(Q)

Lowest at CNY 15.74 MM

NET PROFIT(Q)

Lowest at CNY 13.64 MM

EPS(Q)

Lowest at CNY 0.09

Here's what is working for Wuxi New Hongtai Electrical Technology Co., Ltd.

Cash and Eqv

Highest at CNY 1,066.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -65.51 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Wuxi New Hongtai Electrical Technology Co., Ltd.

Operating Cash Flow

Lowest at CNY 76.83 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 14.82 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 9.41 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 15.74 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 13.64 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 5.98% (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