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

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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 22.48% and Operating profit at 1.11% over the last 5 years

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

INTEREST(HY) At CNY 146.51 MM has Grown at 11.47%
PRE-TAX PROFIT(Q) At CNY 170.65 MM has Fallen at -68.89%
NET PROFIT(Q) At CNY 100.82 MM has Fallen at -77.87%

With ROE of 2.48%, it has a fair valuation with a 1.43 Price to Book Value

Over the past year, while the stock has generated a return of -2.46%, its profits have fallen by -50.7%
At the current price, the company has a high dividend yield of 0.6

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.46% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

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 Aerospace & Defense)

When to re-enter? - We will constantly monitor the company and review our call based on new data

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

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

AVIC Airborne Systems Co., Ltd.

0.72%

0.10

23.22%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

22.48%

EBIT Growth (5y)

1.11%

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

32.54%

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

1.43

EV to EBIT

76.06

EV to EBITDA

25.41

EV to Capital Employed

1.38

EV to Sales

2.52

PEG Ratio

Dividend Yield

0.63%

ROCE (Latest)

1.81%

ROE (Latest)

2.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY -284.27 MM

RAW MATERIAL COST(Y)

Fallen by -4.04% (YoY

-32What is not working for the Company

INTEREST(HY)

At CNY 146.51 MM has Grown at 11.47%

PRE-TAX PROFIT(Q)

At CNY 170.65 MM has Fallen at -68.89%

NET PROFIT(Q)

At CNY 100.82 MM has Fallen at -77.87%

ROCE(HY)

Lowest at 1.86%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.09%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.79%

NET SALES(Q)

Lowest at CNY 4,685.37 MM

OPERATING PROFIT(Q)

Lowest at CNY 136.14 MM

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

Operating Cash Flow

Highest at CNY -284.27 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -4.04% (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.

Pre-Tax Profit

At CNY 170.65 MM has Fallen at -68.89%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 100.82 MM has Fallen at -77.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 146.51 MM has Grown at 11.47%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 4,685.37 MM has Fallen at -16.28%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 4,685.37 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 136.14 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 1.09%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0.79%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at CNY 0.56 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income