Zhejiang Prulde Electric Appliance 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 Prulde Electric Appliance Co., Ltd.

Why is Zhejiang Prulde Electric Appliance Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 9.91%

The company has been able to generate a Return on Capital Employed (avg) of 9.91% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 11.27% and Operating profit at -17.68% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 8.65% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

INTEREST(HY) At CNY 1.72 MM has Grown at 11.75%
DEBT-EQUITY RATIO (HY) Highest at -26.58 %
RAW MATERIAL COST(Y) Grown by 6.08% (YoY)

With ROE of 5.04%, it has a attractive valuation with a 0.60 Price to Book Value

Over the past year, while the stock has generated a return of -7.86%, its profits have risen by 12.3%

Below par performance in long term as well as near term

Along with generating -7.86% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Prulde Electric Appliance 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 Zhejiang Prulde Electric Appliance Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Prulde Electric Appliance Co., Ltd.

-7.86%

-0.17

41.90%

China Shanghai Composite

19.22%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.27%

EBIT Growth (5y)

-17.68%

EBIT to Interest (avg)

13.74

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

0.65

Tax Ratio

15.24%

Dividend Payout Ratio

50.81%

Pledged Shares

Institutional Holding

ROCE (avg)

9.91%

ROE (avg)

8.65%

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

0.60

EV to EBIT

8.88

EV to EBITDA

5.26

EV to Capital Employed

0.46

EV to Sales

0.46

PEG Ratio

Dividend Yield

ROCE (Latest)

5.16%

ROE (Latest)

5.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Bullish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 70.53 MM

NET SALES(Q)

Highest at CNY 261.68 MM

-8What is not working for the Company

INTEREST(HY)

At CNY 1.72 MM has Grown at 11.75%

DEBT-EQUITY RATIO (HY)

Highest at -26.58 %

RAW MATERIAL COST(Y)

Grown by 6.08% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.92 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.03 times

Here's what is working for Zhejiang Prulde Electric Appliance Co., Ltd.

Operating Cash Flow

Highest at CNY 70.53 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 261.68 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Zhejiang Prulde Electric Appliance Co., Ltd.

Interest

At CNY 1.72 MM has Grown at 11.75%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -26.58 % 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

Inventory Turnover Ratio

Lowest at 2.92 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 5.03 times

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 6.08% (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