Zhuzhou Huarui Precision Cutting Tools 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

Zhuzhou Huarui Precision Cutting Tools Co., Ltd.

Why is Zhuzhou Huarui Precision Cutting Tools Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 24.49% and Operating profit at 14.65% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

INTEREST(9M) At CNY 30.52 MM has Grown at 9.47%
INVENTORY TURNOVER RATIO(HY) Lowest at 1.36 times

With ROE of 9.36%, it has a very expensive valuation with a 5.15 Price to Book Value

Over the past year, while the stock has generated a return of 190.04%, its profits have fallen by -28.6%

Market Beating performance in long term as well as near term

Along with generating 190.04% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Zhuzhou Huarui Precision Cutting Tools 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 Zhuzhou Huarui Precision Cutting Tools Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhuzhou Huarui Precision Cutting Tools Co., Ltd.

106.44%

2.00

62.82%

China Shanghai Composite

23.74%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.49%

EBIT Growth (5y)

14.65%

EBIT to Interest (avg)

54.28

Debt to EBITDA (avg)

0.89

Net Debt to Equity (avg)

0.43

Sales to Capital Employed (avg)

0.40

Tax Ratio

11.33%

Dividend Payout Ratio

24.94%

Pledged Shares

Institutional Holding

ROCE (avg)

16.74%

ROE (avg)

13.14%

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

5.15

EV to EBIT

43.64

EV to EBITDA

23.35

EV to Capital Employed

3.60

EV to Sales

8.49

PEG Ratio

Dividend Yield

ROCE (Latest)

8.24%

ROE (Latest)

9.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

19What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 297.99 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 100.6%

RAW MATERIAL COST(Y)

Fallen by -42.51% (YoY

DIVIDEND PER SHARE(HY)

Highest at CNY 1.47

NET SALES(Q)

At CNY 251.56 MM has Grown at 16.09%

PRE-TAX PROFIT(Q)

At CNY 60.12 MM has Grown at 78.79%

NET PROFIT(Q)

At CNY 51.54 MM has Grown at 73.01%

-4What is not working for the Company

INTEREST(9M)

At CNY 30.52 MM has Grown at 9.47%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.36 times

Here's what is working for Zhuzhou Huarui Precision Cutting Tools Co., Ltd.

Operating Cash Flow

Highest at CNY 297.99 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

At CNY 251.56 MM has Grown at 16.09%

over average net sales of the previous four periods of CNY 216.68 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 60.12 MM has Grown at 78.79%

over average net sales of the previous four periods of CNY 33.63 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 51.54 MM has Grown at 73.01%

over average net sales of the previous four periods of CNY 29.79 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Dividend per share

Highest at CNY 1.47

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 100.6%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -42.51% (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 Huarui Precision Cutting Tools Co., Ltd.

Inventory Turnover Ratio

Lowest at 1.36 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

At CNY 30.52 MM has Grown at 9.47%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)