Apple Flavor & Fragrance Group Co. Ltd. (603020) 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

Apple Flavor & Fragrance Group Co. Ltd.

Why is Apple Flavor & Fragrance Group Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 8.99%

The company has been able to generate a Return on Capital Employed (avg) of 8.99% 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 -0.73% and Operating profit at -6.59% over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 100.98 MM
NET SALES(9M) At CNY 1,849.91 MM has Grown at -9.92%
NET PROFIT(Q) At CNY 25.42 MM has Fallen at -35.09%

With ROE of 5.63%, it has a very attractive valuation with a 1.17 Price to Book Value

Over the past year, while the stock has generated a return of 21.03%, its profits have risen by 81.5% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 1.8

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Apple Flavor & Fragrance Group Co. Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Apple Flavor & Fragrance Group Co. Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Apple Flavor & Fragrance Group Co. Ltd.

18.21%

1.55

32.29%

China Shanghai Composite

15.17%

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)

-0.73%

EBIT Growth (5y)

-6.59%

EBIT to Interest (avg)

50.02

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.51

Sales to Capital Employed (avg)

0.83

Tax Ratio

22.09%

Dividend Payout Ratio

42.50%

Pledged Shares

Institutional Holding

ROCE (avg)

8.99%

ROE (avg)

5.38%

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

1.17

EV to EBIT

19.34

EV to EBITDA

11.46

EV to Capital Employed

1.33

EV to Sales

0.89

PEG Ratio

0.25

Dividend Yield

1.80%

ROCE (Latest)

6.90%

ROE (Latest)

5.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

4What is working for the Company

ROCE(HY)

Highest at 5.61%

RAW MATERIAL COST(Y)

Fallen by -5.2% (YoY

CASH AND EQV(HY)

Highest at CNY 3,288 MM

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 100.98 MM

NET SALES(9M)

At CNY 1,849.91 MM has Grown at -9.92%

NET PROFIT(Q)

At CNY 25.42 MM has Fallen at -35.09%

Here's what is working for Apple Flavor & Fragrance Group Co. Ltd.

Cash and Eqv

Highest at CNY 3,288 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -5.2% (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 Apple Flavor & Fragrance Group Co. Ltd.

Net Sales

At CNY 1,849.91 MM has Grown at -9.92%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 100.98 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Profit

At CNY 25.42 MM has Fallen at -35.09%

over average net sales of the previous four periods of CNY 39.16 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)