Why is AECC Aero-engine Control Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 9.80% and Operating profit at 12.68% over the last 5 years
2
The company has declared negative results for the last 2 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at CNY 392 MM
- NET PROFIT(HY) At CNY 268.2 MM has Grown at -31.36%
- ROCE(HY) Lowest at 5.18%
3
Below par performance in long term as well as near term
- Along with generating -22.00% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
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 Aerospace & Defense)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is AECC Aero-engine Control Co., Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
AECC Aero-engine Control Co., Ltd.
-100.0%
-0.26
28.97%
China Shanghai Composite
15.19%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
9.80%
EBIT Growth (5y)
12.68%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.22
Sales to Capital Employed (avg)
0.41
Tax Ratio
13.07%
Dividend Payout Ratio
30.15%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.76%
ROE (avg)
5.97%
Valuation Key Factors 
Factor
Value
P/E Ratio
43
Industry P/E
Price to Book Value
2.04
EV to EBIT
36.89
EV to EBITDA
17.50
EV to Capital Employed
2.53
EV to Sales
4.03
PEG Ratio
NA
Dividend Yield
0.89%
ROCE (Latest)
6.85%
ROE (Latest)
4.78%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-17What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 392 MM
NET PROFIT(HY)
At CNY 268.2 MM has Grown at -31.36%
ROCE(HY)
Lowest at 5.18%
INTEREST COVERAGE RATIO(Q)
Lowest at 32,197.52
OPERATING PROFIT(Q)
Lowest at CNY 162.76 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 12.23 %
RAW MATERIAL COST(Y)
Grown by 23.25% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at -22.15 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 1.07%
Here's what is not working for AECC Aero-engine Control Co., Ltd.
Interest Coverage Ratio
Lowest at 32,197.52
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at CNY 162.76 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 12.23 % and Fallen
In each period in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Net Profit
At CNY 268.2 MM has Grown at -31.36%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
Operating Cash Flow
Lowest at CNY 392 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Debt-Equity Ratio
Highest at -22.15 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 1.07%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 23.25% (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






