Advanced Fiber Resources Zhuhai Ltd. (300620) 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

Advanced Fiber Resources Zhuhai Ltd.

Why is Advanced Fiber Resources Zhuhai Ltd. ?

Poor Management Efficiency with a low ROCE of 5.71%

The company has been able to generate a Return on Capital Employed (avg) of 5.71% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 23.86% and Operating profit at 21.55% over the last 5 years

With a growth in Net Sales of 15.87%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 4 consecutive quarters
NET PROFIT(HY) At CNY 105.73 MM has Grown at 382.14%
ROCE(HY) Highest at 10.13%
RAW MATERIAL COST(Y) Fallen by -64.5% (YoY)

With ROE of 9.66%, it has a expensive valuation with a 32.85 Price to Book Value

Over the past year, while the stock has generated a return of 806.25%, its profits have risen by 184.3% ; the PEG ratio of the company is 1.8
At the current price, the company has a high dividend yield of 0.1

Market Beating performance in long term as well as near term

Along with generating 806.25% 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 hold?

Overall Portfolio exposure to Advanced Fiber Resources Zhuhai 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 Advanced Fiber Resources Zhuhai Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Advanced Fiber Resources Zhuhai Ltd.

832.48%

9.78

94.58%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.86%

EBIT Growth (5y)

21.55%

EBIT to Interest (avg)

35.46

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

0.42

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

28.21%

Pledged Shares

Institutional Holding

ROCE (avg)

5.71%

ROE (avg)

5.37%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

340

Industry P/E

Price to Book Value

32.85

EV to EBIT

354.23

EV to EBITDA

257.11

EV to Capital Employed

36.54

EV to Sales

44.15

PEG Ratio

1.84

Dividend Yield

0.07%

ROCE (Latest)

10.32%

ROE (Latest)

9.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Bullish

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

NET PROFIT(HY)

At CNY 105.73 MM has Grown at 382.14%

ROCE(HY)

Highest at 10.13%

RAW MATERIAL COST(Y)

Fallen by -64.5% (YoY

CASH AND EQV(HY)

Highest at CNY 2,510.94 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.22 times

NET SALES(Q)

At CNY 426.47 MM has Grown at 15.87%

-9What is not working for the Company

INTEREST(HY)

At CNY 11.3 MM has Grown at 74.97%

Here's what is working for Advanced Fiber Resources Zhuhai Ltd.

Net Profit

At CNY 105.73 MM has Grown at 382.14%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 426.47 MM has Grown at 15.87%

over average net sales of the previous four periods of CNY 368.05 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 2,510.94 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.22 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -64.5% (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 Advanced Fiber Resources Zhuhai Ltd.

Interest

At CNY 11.3 MM has Grown at 74.97%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)