Zhuhai Enpower Electric Co., Ltd. (300681) 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

Zhuhai Enpower Electric Co., Ltd.

Why is Zhuhai Enpower Electric Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.63%

The company has been able to generate a Return on Capital Employed (avg) of 0.63% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 54.99% and Operating profit at 18.01% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 4.27% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 54.99% and Operating profit at 18.01% over the last 5 years

PRE-TAX PROFIT(Q) At CNY 8.24 MM has Grown at 108.1%
RAW MATERIAL COST(Y) Fallen by -11.8% (YoY)

With ROE of 3.26%, it has a very expensive valuation with a 2.44 Price to Book Value

Over the past year, while the stock has generated a return of 26.36%, its profits have fallen by -50.3%
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhuhai Enpower Electric 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 Zhuhai Enpower Electric Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhuhai Enpower Electric Co., Ltd.

12.2%

2.28

55.32%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

54.99%

EBIT Growth (5y)

18.01%

EBIT to Interest (avg)

-0.67

Debt to EBITDA (avg)

4.70

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

0.65

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

10.42%

Pledged Shares

Institutional Holding

ROCE (avg)

0.63%

ROE (avg)

4.27%

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

2.44

EV to EBIT

253.76

EV to EBITDA

53.79

EV to Capital Employed

1.92

EV to Sales

2.41

PEG Ratio

Dividend Yield

0.14%

ROCE (Latest)

0.76%

ROE (Latest)

3.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

3What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 8.24 MM has Grown at 108.1%

RAW MATERIAL COST(Y)

Fallen by -11.8% (YoY

-16What is not working for the Company

NET PROFIT(9M)

At CNY 46.2 MM has Grown at -61.66%

INTEREST(HY)

At CNY 17.67 MM has Grown at 11.31%

DEBT-EQUITY RATIO (HY)

Highest at 38.11 %

INTEREST COVERAGE RATIO(Q)

Lowest at 54.74

OPERATING PROFIT(Q)

Lowest at CNY 2.35 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.43 %

Here's what is working for Zhuhai Enpower Electric Co., Ltd.

Pre-Tax Profit

At CNY 8.24 MM has Grown at 108.1%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -11.8% (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 Zhuhai Enpower Electric Co., Ltd.

Net Profit

At CNY 30.56 MM has Grown at -36.6%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 17.67 MM has Grown at 11.31%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 54.74

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 38.11 % 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

Operating Profit

Lowest at CNY 2.35 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.43 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales