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

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 8.92% and Operating profit at -17.37% over the last 5 years

PRE-TAX PROFIT(Q) At CNY 4.66 MM has Fallen at -67.86%
NET PROFIT(Q) At CNY 4.17 MM has Fallen at -58.22%
DEBT-EQUITY RATIO (HY) Highest at 20.35 %

With ROE of 6.78%, it has a very expensive valuation with a 6.30 Price to Book Value

Over the past year, while the stock has generated a return of 25.39%, 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.

42.11%

2.44

36.06%

China Shanghai Composite

17.07%

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)

8.92%

EBIT Growth (5y)

-17.37%

EBIT to Interest (avg)

25.77

Debt to EBITDA (avg)

0.16

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.76

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

6.30

EV to EBIT

237.72

EV to EBITDA

122.78

EV to Capital Employed

5.76

EV to Sales

6.48

PEG Ratio

0.93

Dividend Yield

0.21%

ROCE (Latest)

2.42%

ROE (Latest)

6.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

9What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 4.12 times

NET SALES(Q)

Highest at CNY 240.47 MM

-21What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 4.66 MM has Fallen at -67.86%

NET PROFIT(Q)

At CNY 4.17 MM has Fallen at -58.22%

DEBT-EQUITY RATIO (HY)

Highest at 20.35 %

RAW MATERIAL COST(Y)

Grown by 7.96% (YoY

CASH AND EQV(HY)

Lowest at CNY 241.48 MM

INTEREST(Q)

Highest at CNY 1.21 MM

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

Net Sales

Highest at CNY 240.47 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 240.47 MM has Grown at 21.03%

over average net sales of the previous four periods of CNY 198.69 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 4.12 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 Zhejiang Dehong Automotive Electronic & Electrical Co., Ltd.

Pre-Tax Profit

At CNY 4.66 MM has Fallen at -67.86%

over average net sales of the previous four periods of CNY 14.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 4.17 MM has Fallen at -58.22%

over average net sales of the previous four periods of CNY 9.98 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 1.21 MM has Grown at 28.34%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 20.35 % 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 1.21 MM

in the last five periods and Increased by 28.34% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 241.48 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 7.96% (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