Zhejiang HangKe Technology, Inc. Co. (688006) 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

Zhejiang HangKe Technology, Inc. Co.

Why is Zhejiang HangKe Technology, Inc. Co. ?

Poor long term growth as Net Sales has grown by an annual rate of 18.84% and Operating profit at -8.00% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

NET PROFIT(HY) At CNY 65.84 MM has Grown at -75.61%
INTEREST(HY) At CNY 1.11 MM has Grown at 147.98%
OPERATING CASH FLOW(Y) Lowest at CNY 163.68 MM

With ROE of 6.38%, it has a expensive valuation with a 4.48 Price to Book Value

Over the past year, while the stock has generated a return of 32.13%, its profits have fallen by -43.2%
At the current price, the company has a high dividend yield of 0.4

Market Beating Performance

The stock has generated a return of 32.13% in the last 1 year, much higher than market (China Shanghai Composite) returns of 14.77%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang HangKe Technology, Inc. Co. 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 Zhejiang HangKe Technology, Inc. Co. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang HangKe Technology, Inc. Co.

36.76%

0.87

52.59%

China Shanghai Composite

15.19%

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)

18.84%

EBIT Growth (5y)

-8.00%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.44

Sales to Capital Employed (avg)

0.56

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

41.81%

Pledged Shares

Institutional Holding

ROCE (avg)

15.10%

ROE (avg)

11.26%

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

4.48

EV to EBIT

161.22

EV to EBITDA

86.47

EV to Capital Employed

8.03

EV to Sales

7.07

PEG Ratio

Dividend Yield

0.45%

ROCE (Latest)

4.98%

ROE (Latest)

6.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

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

1What is working for the Company

CASH AND EQV(HY)

Highest at CNY 6,154.56 MM

-33What is not working for the Company

NET PROFIT(HY)

At CNY 65.84 MM has Grown at -75.61%

INTEREST(HY)

At CNY 1.11 MM has Grown at 147.98%

OPERATING CASH FLOW(Y)

Lowest at CNY 163.68 MM

ROCE(HY)

Lowest at 5.11%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.71%

RAW MATERIAL COST(Y)

Grown by 38.17% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.17%

NET SALES(Q)

At CNY 671.66 MM has Fallen at -8.77%

Here's what is working for Zhejiang HangKe Technology, Inc. Co.

Cash and Eqv

Highest at CNY 6,154.56 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Zhejiang HangKe Technology, Inc. Co.

Net Profit

At CNY 65.84 MM has Grown at -75.61%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 1.11 MM has Grown at 147.98%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 0.71% and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Cash Flow

Lowest at CNY 163.68 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 671.66 MM has Fallen at -8.77%

over average net sales of the previous four periods of CNY 736.2 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 1.17%

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 38.17% (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

Non Operating Income

Highest at CNY 0.43 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income