Avic Heavy Machinery Co., Ltd. (600765) 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 Heavy Machinery Co., Ltd.

Why is Avic Heavy Machinery Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 9.22% and Operating profit at -7.15% over the last 5 years

With a fall in Net Sales of -12.01%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 7 consecutive quarters
The company has declared negative results in Sep 23 after 10 consecutive negative quarters
OPERATING CASH FLOW(Y) Lowest at CNY -469.85 MM
PRE-TAX PROFIT(Q) At CNY 125.37 MM has Fallen at -66.97%
NET PROFIT(Q) At CNY 123.71 MM has Fallen at -57.57%

With ROE of 4.21%, it has a fair valuation with a 1.75 Price to Book Value

Over the past year, while the stock has generated a return of 15.48%, its profits have fallen by -54.9%
At the current price, the company has a high dividend yield of 0.7

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Avic Heavy Machinery Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Avic Heavy Machinery Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Avic Heavy Machinery Co., Ltd.

-15.91%

-0.04

36.77%

China Shanghai Composite

21.43%

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)

7.45%

EBIT Growth (5y)

7.37%

EBIT to Interest (avg)

11.58

Debt to EBITDA (avg)

0.59

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

0.57

Tax Ratio

11.79%

Dividend Payout Ratio

2.16%

Pledged Shares

Institutional Holding

ROCE (avg)

10.45%

ROE (avg)

9.66%

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

1.45

EV to EBIT

26.30

EV to EBITDA

16.99

EV to Capital Employed

1.40

EV to Sales

2.20

PEG Ratio

4.38

Dividend Yield

0.92%

ROCE (Latest)

5.33%

ROE (Latest)

5.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

7What is working for the Company

NET PROFIT(HY)

At CNY 151.05 MM has Grown at 186.17%

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -453.13 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.3 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.84 times

DEBT-EQUITY RATIO (HY)

Highest at 12.53 %

Here's what is working for Avic Heavy Machinery Co., Ltd.

Net Profit

At CNY 151.05 MM has Grown at 186.17%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CNY MM)

Here's what is not working for Avic Heavy Machinery Co., Ltd.

Operating Cash Flow

Lowest at CNY -453.13 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Lowest at 1.3 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

Debtors Turnover Ratio

Lowest at 0.84 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Debt-Equity Ratio

Highest at 12.53 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio