Zhejiang Dehong Automotive Electronic & Electrical Co., Ltd. (603701) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Dehong Automotive Electronic & Electrical Co., Ltd.

Why is Zhejiang Dehong Automotive Electronic & Electrical Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.96%

The company has been able to generate a Return on Capital Employed (avg) of 3.96% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 10.13% and Operating profit at -17.10% over the last 5 years

INTEREST(HY) At CNY 1.52 MM has Grown at 744.3%
OPERATING CASH FLOW(Y) Lowest at CNY -55.06 MM
NET PROFIT(Q) At CNY 5.1 MM has Fallen at -52.3%

With ROE of 6.78%, it has a very expensive valuation with a 6.25 Price to Book Value

Over the past year, while the stock has generated a return of 18.27%, its profits have risen by 99.4% ; the PEG ratio of the company is 0.9
At the current price, the company has a high dividend yield of 0.2

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 Auto Components & Equipments)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Zhejiang Dehong Automotive Electronic & Electrical Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Dehong Automotive Electronic & Electrical Co., Ltd.

18.27%

2.11

37.58%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.13%

EBIT Growth (5y)

-17.10%

EBIT to Interest (avg)

25.77

Debt to EBITDA (avg)

0.16

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.74

Tax Ratio

6.74%

Dividend Payout Ratio

22.66%

Pledged Shares

Institutional Holding

ROCE (avg)

3.96%

ROE (avg)

5.26%

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

6.25

EV to EBIT

236.03

EV to EBITDA

121.90

EV to Capital Employed

5.72

EV to Sales

6.44

PEG Ratio

0.93

Dividend Yield

0.21%

ROCE (Latest)

2.42%

ROE (Latest)

6.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

Mildly Bearish

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

14What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -17.42% (YoY

NET PROFIT(9M)

Higher at CNY 40.94 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.63%

NET SALES(Q)

Highest at CNY 223.09 MM

OPERATING PROFIT(Q)

Highest at CNY 16 MM

OPERATING PROFIT MARGIN(Q)

Highest at 7.17 %

-18What is not working for the Company

INTEREST(HY)

At CNY 1.52 MM has Grown at 744.3%

OPERATING CASH FLOW(Y)

Lowest at CNY -55.06 MM

NET PROFIT(Q)

At CNY 5.1 MM has Fallen at -52.3%

CASH AND EQV(HY)

Lowest at CNY 265.55 MM

DEBT-EQUITY RATIO (HY)

Highest at 11.37 %

Here's what is working for Zhejiang Dehong Automotive Electronic & Electrical Co., Ltd.

Net Sales

Highest at CNY 223.09 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 223.09 MM has Grown at 23.93%

over average net sales of the previous four periods of CNY 180.02 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 16 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 7.17 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Inventory Turnover Ratio

Highest at 3.63%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -17.42% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Zhejiang Dehong Automotive Electronic & Electrical Co., Ltd.

Interest

At CNY 1.52 MM has Grown at 744.3%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 5.1 MM has Fallen at -52.3%

over average net sales of the previous four periods of CNY 10.69 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -55.06 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Cash and Eqv

Lowest at CNY 265.55 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 11.37 %

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