Why is Apple Flavor & Fragrance Group Co. Ltd. ?
1
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)
2
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
3
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%
4
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
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 FMCG)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Apple Flavor & Fragrance Group Co. Ltd. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Apple Flavor & Fragrance Group Co. Ltd.
62.79%
1.55
32.29%
China Shanghai Composite
21.43%
1.58
14.20%
Quality key factors
Factor
Value
Sales Growth (5y)
-3.04%
EBIT Growth (5y)
-18.41%
EBIT to Interest (avg)
50.02
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.51
Sales to Capital Employed (avg)
0.79
Tax Ratio
22.09%
Dividend Payout Ratio
43.31%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.99%
ROE (avg)
5.38%
Valuation Key Factors 
Factor
Value
P/E Ratio
42
Industry P/E
Price to Book Value
1.21
EV to EBIT
27.51
EV to EBITDA
17.34
EV to Capital Employed
1.39
EV to Sales
1.00
PEG Ratio
NA
Dividend Yield
1.72%
ROCE (Latest)
5.07%
ROE (Latest)
2.89%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Bullish
Bullish
Technical Movement
3What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 1.1% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 7.19 times
NET PROFIT(Q)
At CNY 30.94 MM has Grown at 97.94%
-13What is not working for the Company
NET PROFIT(HY)
At CNY 2.26 MM has Grown at -97.59%
OPERATING CASH FLOW(Y)
Lowest at CNY 29.75 MM
ROCE(HY)
Lowest at 2.65%
Here's what is working for Apple Flavor & Fragrance Group Co. Ltd.
Net Profit
At CNY 30.94 MM has Grown at 97.94%
over average net sales of the previous four periods of CNY 15.63 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Debtors Turnover Ratio
Highest at 7.19 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by 1.1% (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.
Operating Cash Flow
Lowest at CNY 29.75 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)






