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 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 Heavy Machinery Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Avic Heavy Machinery Co., Ltd.

-8.56%

-0.04

36.77%

China Shanghai Composite

15.17%

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)

9.22%

EBIT Growth (5y)

-7.15%

EBIT to Interest (avg)

11.58

Debt to EBITDA (avg)

0.59

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

0.60

Tax Ratio

11.79%

Dividend Payout Ratio

28.00%

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

1.75

EV to EBIT

36.62

EV to EBITDA

19.82

EV to Capital Employed

1.69

EV to Sales

2.47

PEG Ratio

Dividend Yield

0.71%

ROCE (Latest)

4.63%

ROE (Latest)

4.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-29What is not working for the Company

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%

INTEREST(HY)

At CNY 48.96 MM has Grown at 6.37%

ROCE(HY)

Lowest at 1.83%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.91 times

RAW MATERIAL COST(Y)

Grown by 22.11% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 10.05 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.61 times

NET SALES(Q)

Lowest at CNY 2,025.78 MM

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

Pre-Tax Profit

At CNY 125.37 MM has Fallen at -66.97%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 123.71 MM has Fallen at -57.57%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -469.85 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)

Interest

At CNY 48.96 MM has Grown at 6.37%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 0.91 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

Net Sales

Lowest at CNY 2,025.78 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -12.01%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 10.05 %

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

Inventory Turnover Ratio

Lowest at 1.61 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 22.11% (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

Non Operating Income

Highest at CNY 0.63 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income