Zhejiang Hongchang Electrical Technology Co., Ltd. () 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 Hongchang Electrical Technology Co., Ltd.

Why is Zhejiang Hongchang Electrical Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 13.96% and Operating profit at -28.61% over the last 5 years

With a fall in Net Sales of -5.42%, the company declared Very Negative results in Mar 26

PRE-TAX PROFIT(Q) At CNY 3.42 MM has Fallen at -71.89%
NET PROFIT(Q) At CNY 3.47 MM has Fallen at -68.92%
OPERATING CASH FLOW(Y) Lowest at CNY -33.03 MM

With ROE of 2.15%, it has a fair valuation with a 2.74 Price to Book Value

Over the past year, while the stock has generated a return of 9.30%, its profits have fallen by -54%

Underperformed the market in the last 1 year

The stock has generated a return of 9.30% in the last 1 year, much lower than market (China Shanghai Composite) returns of 21.22%

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 Industrial Manufacturing)

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

Is Zhejiang Hongchang Electrical Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Hongchang Electrical Technology Co., Ltd.

9.3%

0.59

80.23%

China Shanghai Composite

21.22%

1.59

13.38%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.96%

EBIT Growth (5y)

-28.61%

EBIT to Interest (avg)

21.90

Debt to EBITDA (avg)

0.37

Net Debt to Equity (avg)

-0.19

Sales to Capital Employed (avg)

0.58

Tax Ratio

8.30%

Dividend Payout Ratio

10.37%

Pledged Shares

Institutional Holding

ROCE (avg)

7.69%

ROE (avg)

8.38%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

128

Industry P/E

Price to Book Value

2.74

EV to EBIT

187.60

EV to EBITDA

58.79

EV to Capital Employed

3.67

EV to Sales

3.12

PEG Ratio

Dividend Yield

ROCE (Latest)

1.96%

ROE (Latest)

2.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-25What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 3.42 MM has Fallen at -71.89%

NET PROFIT(Q)

At CNY 3.47 MM has Fallen at -68.92%

OPERATING CASH FLOW(Y)

Lowest at CNY -33.03 MM

ROCE(HY)

Lowest at 1.68%

INTEREST COVERAGE RATIO(Q)

Lowest at 296.59

RAW MATERIAL COST(Y)

Grown by 18.22% (YoY

NET SALES(Q)

Lowest at CNY 255.79 MM

OPERATING PROFIT(Q)

Lowest at CNY 1.62 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.63 %

EPS(Q)

Lowest at CNY 0.01

Here's what is not working for Zhejiang Hongchang Electrical Technology Co., Ltd.

Pre-Tax Profit

At CNY 3.42 MM has Fallen at -71.89%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 3.47 MM has Fallen at -68.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 296.59

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY -33.03 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

Lowest at CNY 255.79 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 1.62 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.63 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at CNY 0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 18.22% (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 1.69 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income