AECC Aviation Power Co., Ltd. (600893) 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 Aviation Power Co., Ltd.

Why is AECC Aviation Power Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.42%

The company has been able to generate a Return on Capital Employed (avg) of 2.42% 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 9.98% and Operating profit at -9.63% 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 3.31% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.98% and Operating profit at -9.63% over the last 5 years

The company has declared negative results for the last 10 consecutive quarters

NET SALES(HY) At CNY 16,747.35 MM has Grown at -14.23%
NET PROFIT(Q) At CNY 22.29 MM has Fallen at -85.93%
ROCE(HY) Lowest at 0.61%

With ROE of 1.27%, it has a very expensive valuation with a 2.46 Price to Book Value

Over the past year, while the stock has generated a return of 59.27%, its profits have fallen by -65.6%
At the current price, the company has a high dividend yield of 0.3

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 Aviation Power Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

AECC Aviation Power Co., Ltd.

10.95%

1.28

39.27%

China Shanghai Composite

20.18%

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)

10.33%

EBIT Growth (5y)

-0.21%

EBIT to Interest (avg)

4.78

Debt to EBITDA (avg)

3.66

Net Debt to Equity (avg)

0.76

Sales to Capital Employed (avg)

0.61

Tax Ratio

18.33%

Dividend Payout Ratio

30.25%

Pledged Shares

Institutional Holding

ROCE (avg)

2.42%

ROE (avg)

3.31%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

131

Industry P/E

Price to Book Value

2.29

EV to EBIT

146.35

EV to EBITDA

47.63

EV to Capital Employed

1.68

EV to Sales

2.72

PEG Ratio

Dividend Yield

0.28%

ROCE (Latest)

1.15%

ROE (Latest)

1.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY -2,889.56 MM

NET PROFIT(HY)

Higher at CNY 522.64 MM

RAW MATERIAL COST(Y)

Fallen by -26.4% (YoY

-14What is not working for the Company

INTEREST(9M)

At CNY 472.75 MM has Grown at 6.32%

INTEREST COVERAGE RATIO(Q)

Lowest at 148.09

OPERATING PROFIT MARGIN(Q)

Lowest at 2.49 %

CASH AND EQV(HY)

Lowest at CNY 8,667.34 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.14 times

OPERATING PROFIT(Q)

Lowest at CNY 176.45 MM

NET PROFIT(Q)

Lowest at CNY 4.69 MM

EPS(Q)

Lowest at CNY 0

Here's what is working for AECC Aviation Power Co., Ltd.

Operating Cash Flow

Highest at CNY -2,889.56 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 -26.4% (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 Aviation Power Co., Ltd.

Net Profit

At CNY 4.69 MM has Fallen at -63.59%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 148.09

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 2.49 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Interest

At CNY 472.75 MM has Grown at 6.32%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 176.45 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Net Profit

Lowest at CNY 4.69 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 8,667.34 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 1.14 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio