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

With a growth in Net Profit of 11.44%, the company declared Very 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 -29.06%, its profits have risen by 223.9% ; the PEG ratio of the company is 0.4

Below par performance in long term as well as near term

Along with generating -29.06% returns in the last 1 year, the stock has also underperformed 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 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, Low Return

Absolute

Risk Adjusted

Volatility

Alpha Group (China)

-32.95%

0.17

37.24%

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)

-0.56%

EBIT Growth (5y)

22.01%

EBIT to Interest (avg)

-2.31

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.70

Tax Ratio

14.92%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

0.70%

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

Industry P/E

Price to Book Value

2.33

EV to EBIT

69.50

EV to EBITDA

42.24

EV to Capital Employed

2.30

EV to Sales

2.83

PEG Ratio

0.40

Dividend Yield

ROCE (Latest)

3.31%

ROE (Latest)

2.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly 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

18What is working for the Company

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 %

PRE-TAX PROFIT(Q)

Highest at CNY 78.28 MM

NET PROFIT(Q)

Highest at CNY 51.38 MM

EPS(Q)

Highest at CNY 0.04

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 140.24 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.88 times

INTEREST(Q)

At CNY 3.09 MM has Grown at 18.89%

CASH AND EQV(HY)

Lowest at CNY 1,034.24 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.49 times

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

Interest Coverage Ratio

Highest at 2,117.04

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

Highest at CNY 78.28 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 51.38 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at 4.43 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -8.99% (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 140.24 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)

Interest

At CNY 3.09 MM has Grown at 18.89%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 4.88 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Cash and Eqv

Lowest at CNY 1,034.24 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 2.49 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio