Wuxi Xinhongye Wire & Cable Co., Ltd. () 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 Xinhongye Wire & Cable Co., Ltd.

Why is Wuxi Xinhongye Wire & Cable 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 30.29% and Operating profit at -25.71% 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 11.59% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 30.29% and Operating profit at -25.71% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY -330.26 MM
NET PROFIT(HY) At CNY 53.66 MM has Grown at -25.78%
INTEREST(Q) At CNY 1.37 MM has Grown at 200.55%

With ROE of 4.57%, it has a attractive valuation with a 0.88 Price to Book Value

Over the past year, while the stock has generated a return of 63.69%, its profits have fallen by -31.5%
At the current price, the company has a high dividend yield of 0.7

Market Beating Performance

The stock has generated a return of 63.69% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wuxi Xinhongye Wire & Cable 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 Xinhongye Wire & Cable Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wuxi Xinhongye Wire & Cable Co., Ltd.

43.21%

1.34

54.04%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

30.29%

EBIT Growth (5y)

-25.71%

EBIT to Interest (avg)

39.15

Debt to EBITDA (avg)

4.24

Net Debt to Equity (avg)

0.37

Sales to Capital Employed (avg)

0.69

Tax Ratio

2.79%

Dividend Payout Ratio

76.02%

Pledged Shares

Institutional Holding

ROCE (avg)

6.40%

ROE (avg)

11.59%

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

0.88

EV to EBIT

38.27

EV to EBITDA

24.93

EV to Capital Employed

0.93

EV to Sales

1.03

PEG Ratio

Dividend Yield

0.75%

ROCE (Latest)

2.42%

ROE (Latest)

4.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

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

12What is working for the Company

NET SALES(Q)

At CNY 753.16 MM has Grown at 55.48%

INVENTORY TURNOVER RATIO(HY)

Highest at 8.36%

DEBTORS TURNOVER RATIO(HY)

Highest at 1.74%

-23What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -330.26 MM

NET PROFIT(HY)

At CNY 53.66 MM has Grown at -25.78%

INTEREST(Q)

At CNY 1.37 MM has Grown at 200.55%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,554.64

RAW MATERIAL COST(Y)

Grown by 7.29% (YoY

Here's what is working for Wuxi Xinhongye Wire & Cable Co., Ltd.

Net Sales

At CNY 753.16 MM has Grown at 55.48%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 8.36%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 1.74%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Wuxi Xinhongye Wire & Cable Co., Ltd.

Operating Cash Flow

Lowest at CNY -330.26 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

At CNY 1.37 MM has Grown at 200.55%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 2,554.64

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 53.66 MM has Grown at -25.78%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Interest

Highest at CNY 1.37 MM

in the last five periods and Increased by 200.55% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 7.29% (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