Avic Aviation High-Technology Co., Ltd. (600862) 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 Aviation High-Technology Co., Ltd.

Why is Avic Aviation High-Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 20.20%

The company has been able to generate a Return on Capital Employed (avg) of 20.20% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 8.40% and Operating profit at 14.91% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 13.78% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.40% and Operating profit at 14.91% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

NET SALES(HY) At CNY 2,363.79 MM has Grown at -13.97%
ROCE(HY) Lowest at 11.41%
RAW MATERIAL COST(Y) Grown by 8.19% (YoY)

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -20.94% 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 Industrial Manufacturing)

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

Is Avic Aviation High-Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Avic Aviation High-Technology Co., Ltd.

-20.94%

-0.25

35.37%

China Shanghai Composite

3.0%

0.22

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.40%

EBIT Growth (5y)

14.91%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.20

Sales to Capital Employed (avg)

0.68

Tax Ratio

14.90%

Dividend Payout Ratio

30.14%

Pledged Shares

Institutional Holding

ROCE (avg)

21.06%

ROE (avg)

13.78%

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

3.06

EV to EBIT

21.09

EV to EBITDA

18.13

EV to Capital Employed

3.91

EV to Sales

4.68

PEG Ratio

Dividend Yield

0.11%

ROCE (Latest)

18.56%

ROE (Latest)

11.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,673.14 MM

CASH AND EQV(HY)

Highest at CNY 5,244.26 MM

DEBT-EQUITY RATIO (HY)

Lowest at -35.22 %

-17What is not working for the Company

NET SALES(HY)

At CNY 2,363.79 MM has Grown at -13.97%

ROCE(HY)

Lowest at 11.41%

RAW MATERIAL COST(Y)

Grown by 8.19% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.11 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.11 times

OPERATING PROFIT(Q)

Lowest at CNY 276.09 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 21.53 %

NET PROFIT(Q)

Lowest at CNY 188.09 MM

EPS(Q)

Lowest at CNY 0.14

Here's what is working for Avic Aviation High-Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 1,673.14 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)

Cash and Eqv

Highest at CNY 5,244.26 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -35.22 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Avic Aviation High-Technology Co., Ltd.

Net Sales

At CNY 2,363.79 MM has Grown at -13.97%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 276.09 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 21.53 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 188.09 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.14

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 2.11 times

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 1.11 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 8.19% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Footer loading