AA Industrial Belting (Shanghai) Co., Ltd. (603580) 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

AA Industrial Belting (Shanghai) Co., Ltd.

Why is AA Industrial Belting (Shanghai) Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.48%

The company has been able to generate a Return on Capital Employed (avg) of 3.48% 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 2.88% and Operating profit at -155.28% 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 2.82% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.88% and Operating profit at -155.28% over the last 5 years

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -8.17%, its profits have risen by 81.8% ; the PEG ratio of the company is 6.4
At the current price, the company has a high dividend yield of 0.6

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is AA Industrial Belting (Shanghai) Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

AA Industrial Belting (Shanghai) Co., Ltd.

63.15%

-0.34

35.87%

China Shanghai Composite

21.43%

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)

13.67%

EBIT Growth (5y)

-47.66%

EBIT to Interest (avg)

9.83

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.05

Sales to Capital Employed (avg)

0.40

Tax Ratio

44.81%

Dividend Payout Ratio

24.44%

Pledged Shares

Institutional Holding

ROCE (avg)

3.48%

ROE (avg)

2.82%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.08

EV to EBIT

858.16

EV to EBITDA

40.46

EV to Capital Employed

1.85

EV to Sales

2.79

PEG Ratio

Dividend Yield

1.13%

ROCE (Latest)

0.22%

ROE (Latest)

-0.36%

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

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

23What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 4.25 MM has Grown at 1,073.19%

NET PROFIT(Q)

At CNY 2.79 MM has Grown at 251.13%

ROCE(HY)

Highest at 9.37%

INVENTORY TURNOVER RATIO(HY)

Highest at 2.46 times

NET SALES(Q)

At CNY 102.51 MM has Grown at 24.34%

-26What is not working for the Company

NET PROFIT(HY)

At CNY -7.33 MM has Grown at -845.39%

OPERATING CASH FLOW(Y)

Lowest at CNY -55.95 MM

RAW MATERIAL COST(Y)

Grown by 18.03% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 30.2 %

INTEREST(Q)

Highest at CNY 4.39 MM

EPS(Q)

Lowest at CNY 0.02

Here's what is working for AA Industrial Belting (Shanghai) Co., Ltd.

Pre-Tax Profit

At CNY 4.25 MM has Grown at 1,073.19%

over average net sales of the previous four periods of CNY -0.44 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 2.79 MM has Grown at 251.13%

over average net sales of the previous four periods of CNY 0.79 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 102.51 MM has Grown at 24.34%

over average net sales of the previous four periods of CNY 82.45 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 2.46 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for AA Industrial Belting (Shanghai) Co., Ltd.

Operating Cash Flow

Lowest at CNY -55.95 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

At CNY 4.39 MM has Grown at 108.69%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 4.39 MM

in the last five periods and Increased by 108.69% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

EPS

Lowest at CNY 0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 30.2 %

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

Raw Material Cost

Grown by 18.03% (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