AVIC Airborne Systems Co., Ltd. (600372) 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

AVIC Airborne Systems Co., Ltd.

Why is AVIC Airborne Systems Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 21.50% and Operating profit at 3.47% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(HY) At CNY 135.31 MM has Grown at 7.16%
DEBT-EQUITY RATIO (HY) Highest at 17.29 %
INVENTORY TURNOVER RATIO(HY) Lowest at 1.04 times

With ROE of 2.48%, it has a fair valuation with a 1.56 Price to Book Value

Over the past year, while the stock has generated a return of 29.38%, its profits have fallen by -50.7%
At the current price, the company has a high dividend yield of 0.6

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to AVIC Airborne Systems Co., Ltd. should be less than 10%
Overall Portfolio exposure to Aerospace & Defense should be less than 30%

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

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

Is AVIC Airborne Systems Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

AVIC Airborne Systems Co., Ltd.

-5.5%

0.71

33.22%

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)

20.29%

EBIT Growth (5y)

7.70%

EBIT to Interest (avg)

5.10

Debt to EBITDA (avg)

1.98

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

0.49

Tax Ratio

11.86%

Dividend Payout Ratio

30.81%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

5.15%

ROE (avg)

6.06%

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

1.28

EV to EBIT

39.44

EV to EBITDA

21.29

EV to Capital Employed

1.24

EV to Sales

2.30

PEG Ratio

0.48

Dividend Yield

0.92%

ROCE (Latest)

3.15%

ROE (Latest)

3.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

10What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -17.68% (YoY

PRE-TAX PROFIT(Q)

At CNY 292.37 MM has Grown at 71.33%

NET PROFIT(Q)

At CNY 180.05 MM has Grown at 78.59%

-8What is not working for the Company

INTEREST(HY)

At CNY 154.34 MM has Grown at 5.34%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.96 times

INTEREST COVERAGE RATIO(Q)

Lowest at 432.4

NET SALES(Q)

Lowest at CNY 4,642.13 MM

OPERATING PROFIT(Q)

Lowest at CNY 303.84 MM

Here's what is working for AVIC Airborne Systems Co., Ltd.

Pre-Tax Profit

At CNY 292.37 MM has Grown at 71.33%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 180.05 MM has Grown at 78.59%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -17.68% (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 AVIC Airborne Systems Co., Ltd.

Interest Coverage Ratio

Lowest at 432.4

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 154.34 MM has Grown at 5.34%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 0.96 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at CNY 4,642.13 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 303.84 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)