Wuxi Xinje Electric Co., Ltd. (603416) 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 Xinje Electric Co., Ltd.

Why is Wuxi Xinje Electric Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 13.62% and Operating profit at -7.97% over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 99.43 MM
ROCE(HY) Lowest at 9.61%
DEBTORS TURNOVER RATIO(HY) Lowest at 3.18 times

With ROE of 7.84%, it has a very attractive valuation with a 3.71 Price to Book Value

Over the past year, while the stock has generated a return of 4.47%, its profits have fallen by -6.8%
At the current price, the company has a high dividend yield of 1.2

Underperformed the market in the last 1 year

The stock has generated a return of 4.47% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wuxi Xinje Electric 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 Xinje Electric Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wuxi Xinje Electric Co., Ltd.

-15.35%

1.32

48.30%

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)

13.62%

EBIT Growth (5y)

-7.97%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

0.62

Tax Ratio

5.67%

Dividend Payout Ratio

53.05%

Pledged Shares

Institutional Holding

ROCE (avg)

17.16%

ROE (avg)

13.30%

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

3.71

EV to EBIT

50.09

EV to EBITDA

39.24

EV to Capital Employed

5.85

EV to Sales

4.91

PEG Ratio

Dividend Yield

1.23%

ROCE (Latest)

11.69%

ROE (Latest)

7.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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

4What is working for the Company

CASH AND EQV(HY)

Highest at CNY 2,961.15 MM

DEBT-EQUITY RATIO (HY)

Lowest at -44.29 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.82 times

NET SALES(Q)

Highest at CNY 504.81 MM

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 99.43 MM

ROCE(HY)

Lowest at 9.61%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.18 times

RAW MATERIAL COST(Y)

Grown by 5.08% (YoY

Here's what is working for Wuxi Xinje Electric Co., Ltd.

Net Sales

Highest at CNY 504.81 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 2,961.15 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -44.29 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.82 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Wuxi Xinje Electric Co., Ltd.

Operating Cash Flow

Lowest at CNY 99.43 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)

Debtors Turnover Ratio

Lowest at 3.18 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 5.08% (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