Zhuhai Huajin Capital Co., Ltd. (000532) 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

Zhuhai Huajin Capital Co., Ltd.

Why is Zhuhai Huajin Capital Co., Ltd. ?

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 1.55% and Operating profit at 5.56% 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 14.50% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 1.55% and Operating profit at 5.56% over the last 5 years

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 263.45 MM
NET SALES(HY) At CNY 236.04 MM has Grown at 18.77%
ROCE(HY) Highest at 15.26%

With ROE of 10.87%, it has a fair valuation with a 3.33 Price to Book Value

Over the past year, while the stock has generated a return of -12.41%, its profits have risen by 118.8% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0.4

Below par performance in long term as well as near term

Along with generating -12.41% 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 Zhuhai Huajin Capital Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Zhuhai Huajin Capital Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Zhuhai Huajin Capital Co., Ltd.

-10.73%

0.45

36.48%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.55%

EBIT Growth (5y)

5.56%

EBIT to Interest (avg)

4.12

Debt to EBITDA (avg)

2.10

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

0.23

Tax Ratio

0.65%

Dividend Payout Ratio

13.21%

Pledged Shares

Institutional Holding

ROCE (avg)

7.47%

ROE (avg)

14.50%

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

3.33

EV to EBIT

29.42

EV to EBITDA

23.08

EV to Capital Employed

3.27

EV to Sales

9.77

PEG Ratio

0.26

Dividend Yield

0.41%

ROCE (Latest)

11.10%

ROE (Latest)

10.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 263.45 MM

NET SALES(HY)

At CNY 236.04 MM has Grown at 18.77%

ROCE(HY)

Highest at 15.26%

PRE-TAX PROFIT(Q)

At CNY 46.36 MM has Grown at 119.17%

RAW MATERIAL COST(Y)

Fallen by -19.56% (YoY

CASH AND EQV(HY)

Highest at CNY 906.93 MM

DEBT-EQUITY RATIO (HY)

Lowest at -6.59 %

-13What is not working for the Company

NET PROFIT(Q)

At CNY 23.99 MM has Fallen at -50.4%

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.21 times

OPERATING PROFIT(Q)

Lowest at CNY 30.57 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 26.4 %

Here's what is working for Zhuhai Huajin Capital Co., Ltd.

Operating Cash Flow

Highest at CNY 263.45 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 46.36 MM has Grown at 119.17%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 236.04 MM has Grown at 18.77%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 906.93 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -6.59 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -19.56% (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 Huajin Capital Co., Ltd.

Net Profit

At CNY 23.99 MM has Fallen at -50.4%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 30.57 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 26.4 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 8.21 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio