XiaMen HongXin Electron-tech Group Co. Ltd. (300657) 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

XiaMen HongXin Electron-tech Group Co. Ltd.

Why is XiaMen HongXin Electron-tech Group Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 0.51%

The company has been able to generate a Return on Capital Employed (avg) of 0.51% signifying low profitability per unit of total capital (equity and debt)

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 21.79% and Operating profit at 7.97% 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 1.87% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 21.79% and Operating profit at 7.97% over the last 5 years

Positive results in Mar 25

NET SALES(9M) At CNY 4,403.7 MM has Grown at 20.69%
NET PROFIT(HY) Higher at CNY 81.65 MM
ROCE(HY) Highest at 2.88%

With ROE of -4.48%, it has a fair valuation with a 12.60 Price to Book Value

Over the past year, while the stock has generated a return of 57.67%, its profits have risen by 71.5%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to XiaMen HongXin Electron-tech Group 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 XiaMen HongXin Electron-tech Group Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

XiaMen HongXin Electron-tech Group Co. Ltd.

45.81%

1.43

67.40%

China Shanghai Composite

14.77%

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)

21.79%

EBIT Growth (5y)

7.97%

EBIT to Interest (avg)

-2.78

Debt to EBITDA (avg)

19.14

Net Debt to Equity (avg)

1.42

Sales to Capital Employed (avg)

1.42

Tax Ratio

50.78%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.51%

ROE (avg)

1.87%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

12.60

EV to EBIT

187.71

EV to EBITDA

32.58

EV to Capital Employed

5.65

EV to Sales

2.72

PEG Ratio

Dividend Yield

ROCE (Latest)

3.01%

ROE (Latest)

-4.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

15What is working for the Company

NET SALES(9M)

At CNY 4,403.7 MM has Grown at 20.69%

NET PROFIT(HY)

Higher at CNY 81.65 MM

ROCE(HY)

Highest at 2.88%

PRE-TAX PROFIT(Q)

At CNY 22.67 MM has Grown at 168.61%

-20What is not working for the Company

NET PROFIT(Q)

At CNY 6.8 MM has Fallen at -79%

DEBT-EQUITY RATIO (HY)

Highest at 211.05 %

RAW MATERIAL COST(Y)

Grown by 28.49% (YoY

CASH AND EQV(HY)

Lowest at CNY 712.79 MM

INTEREST(Q)

Highest at CNY 20.1 MM

Here's what is working for XiaMen HongXin Electron-tech Group Co. Ltd.

Pre-Tax Profit

At CNY 22.67 MM has Grown at 168.61%

over average net sales of the previous four periods of CNY 8.44 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 4,403.7 MM has Grown at 20.69%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for XiaMen HongXin Electron-tech Group Co. Ltd.

Net Profit

At CNY 6.8 MM has Fallen at -79%

over average net sales of the previous four periods of CNY 32.39 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 20.1 MM has Grown at 15.68%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 211.05 % and Grown

In each half year 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

Interest

Highest at CNY 20.1 MM

in the last five periods and Increased by 15.68% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 712.79 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 28.49% (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