AECC Aero Science & Technology Co., Ltd. (600391) 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

AECC Aero Science & Technology Co., Ltd.

Why is AECC Aero Science & Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.46%

The company has been able to generate a Return on Capital Employed (avg) of 3.46% 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 5.66% and Operating profit at 32.53% 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 5.51% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 5.66% and Operating profit at 32.53% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

ROCE(HY) Lowest at 2.63%
INTEREST COVERAGE RATIO(Q) Lowest at 458.32
NET PROFIT(Q) At CNY 19.1 MM has Fallen at -49.78%

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 Aerospace & Defense)

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

Is AECC Aero Science & Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

AECC Aero Science & Technology Co., Ltd.

32.81%

3.31

59.81%

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)

7.62%

EBIT Growth (5y)

31.62%

EBIT to Interest (avg)

2.24

Debt to EBITDA (avg)

4.69

Net Debt to Equity (avg)

1.33

Sales to Capital Employed (avg)

1.05

Tax Ratio

14.67%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.46%

ROE (avg)

5.51%

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

5.81

EV to EBIT

61.63

EV to EBITDA

25.13

EV to Capital Employed

3.59

EV to Sales

2.76

PEG Ratio

Dividend Yield

ROCE (Latest)

5.82%

ROE (Latest)

7.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,127.68 MM

NET SALES(9M)

At CNY 3,385.31 MM has Grown at 28.1%

RAW MATERIAL COST(Y)

Fallen by -17.26% (YoY

-18What is not working for the Company

INTEREST(HY)

At CNY 31.06 MM has Grown at 10.96%

INTEREST COVERAGE RATIO(Q)

Lowest at 356.68

NET SALES(Q)

Lowest at CNY 720.92 MM

OPERATING PROFIT(Q)

Lowest at CNY 35.45 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.92 %

PRE-TAX PROFIT(Q)

Lowest at CNY 20.06 MM

NET PROFIT(Q)

Lowest at CNY -11.35 MM

EPS(Q)

Lowest at CNY -0.03

Here's what is working for AECC Aero Science & Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 1,127.68 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -17.26% (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 AECC Aero Science & Technology Co., Ltd.

Net Profit

At CNY -11.35 MM has Fallen at -418%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 31.06 MM has Grown at 10.96%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 356.68

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 720.92 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 35.45 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.92 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 20.06 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

Fallen at -35.67%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -11.35 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.03

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)