Zhuzhou Hongda Electronics Corp., Ltd. (300726) 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

Zhuzhou Hongda Electronics Corp., Ltd.

Why is Zhuzhou Hongda Electronics Corp., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 11.75% and Operating profit at 0.75% over the last 5 years

RAW MATERIAL COST(Y) Fallen by -1.32% (YoY)
CASH AND EQV(HY) Highest at CNY 3,270.92 MM
DEBT-EQUITY RATIO (HY) Lowest at -32.58 %

With ROE of 7.29%, it has a fair valuation with a 1.69 Price to Book Value

Over the past year, while the stock has generated a return of 28.67%, its profits have fallen by -18.3%
At the current price, the company has a high dividend yield of 3

Market Beating Performance

The stock has generated a return of 28.67% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhuzhou Hongda Electronics Corp., 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 Zhuzhou Hongda Electronics Corp., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhuzhou Hongda Electronics Corp., Ltd.

27.37%

1.65

48.26%

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)

11.75%

EBIT Growth (5y)

0.75%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

0.35

Tax Ratio

27.43%

Dividend Payout Ratio

88.50%

Pledged Shares

Institutional Holding

ROCE (avg)

22.55%

ROE (avg)

17.44%

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

1.69

EV to EBIT

19.19

EV to EBITDA

13.48

EV to Capital Employed

2.03

EV to Sales

4.03

PEG Ratio

Dividend Yield

2.98%

ROCE (Latest)

10.57%

ROE (Latest)

7.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.32% (YoY

CASH AND EQV(HY)

Highest at CNY 3,270.92 MM

DEBT-EQUITY RATIO (HY)

Lowest at -32.58 %

INVENTORY TURNOVER RATIO(HY)

Highest at 0.73%

-17What is not working for the Company

NET PROFIT(HY)

At CNY 72.98 MM has Grown at -56.31%

NET SALES(Q)

At CNY 324.16 MM has Fallen at -16.71%

OPERATING CASH FLOW(Y)

Lowest at CNY 546.67 MM

ROCE(HY)

Lowest at 5.2%

INTEREST COVERAGE RATIO(Q)

Lowest at 52,821.89

Here's what is working for Zhuzhou Hongda Electronics Corp., Ltd.

Cash and Eqv

Highest at CNY 3,270.92 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -32.58 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 0.73%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -1.32% (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 Zhuzhou Hongda Electronics Corp., Ltd.

Net Profit

At CNY 72.98 MM has Grown at -56.31%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 324.16 MM has Fallen at -16.71%

over average net sales of the previous four periods of CNY 389.19 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 52,821.89

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 546.67 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)