Alpha Group (China) (002292) 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

Alpha Group (China)

Why is Alpha Group (China) ?

Poor Management Efficiency with a low ROCE of 0.70%

The company has been able to generate a Return on Capital Employed (avg) of 0.70% 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 -0.56% and Operating profit at 22.01% over the last 5 years

Positive results in Mar 26

INTEREST COVERAGE RATIO(Q) Highest at 2,117.04
RAW MATERIAL COST(Y) Fallen by -8.99% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at 4.43 %

With ROE of 2.59%, it has a fair valuation with a 2.33 Price to Book Value

Over the past year, while the stock has generated a return of -19.65%, its profits have risen by 223.9% ; the PEG ratio of the company is 0.4

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 16.83% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -19.65% returns

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Alpha Group (China) should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Alpha Group (China) for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Alpha Group (China)

-6.04%

0.63

39.12%

China Shanghai Composite

3.0%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.56%

EBIT Growth (5y)

22.01%

EBIT to Interest (avg)

0.04

Debt to EBITDA (avg)

0.59

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.70

Tax Ratio

29.56%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

1.37%

ROE (avg)

0.70%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

126

Industry P/E

Price to Book Value

3.27

EV to EBIT

97.27

EV to EBITDA

59.12

EV to Capital Employed

3.22

EV to Sales

3.96

PEG Ratio

0.56

Dividend Yield

ROCE (Latest)

3.31%

ROE (Latest)

2.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly 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

32What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

ROCE(HY)

Highest at 6.91%

PRE-TAX PROFIT(Q)

Highest at CNY 137.87 MM

NET PROFIT(Q)

Highest at CNY 101.49 MM

RAW MATERIAL COST(Y)

Fallen by -44.45% (YoY

NET SALES(Q)

At CNY 677.72 MM has Grown at 25.32%

OPERATING PROFIT(Q)

Highest at CNY 146.86 MM

OPERATING PROFIT MARGIN(Q)

Highest at 21.67 %

EPS(Q)

Highest at CNY 0.08

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 138.38 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.42 times

Here's what is working for Alpha Group (China)

Pre-Tax Profit

At CNY 137.87 MM has Grown at 1,499.31%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 101.49 MM has Grown at 923.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 137.87 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 101.49 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 677.72 MM has Grown at 25.32%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 146.86 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 21.67 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

EPS

Highest at CNY 0.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -44.45% (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 Alpha Group (China)

Operating Cash Flow

Lowest at CNY 138.38 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)

Inventory Turnover Ratio

Lowest at 2.42 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

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