AVIC Xi'an Aircraft Industry Group Co., Ltd. (000768) 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 Xi'an Aircraft Industry Group Co., Ltd.

Why is AVIC Xi'an Aircraft Industry Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.56%

The company has been able to generate a Return on Capital Employed (avg) of 4.56% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 3.30% and Operating profit at 1.25% over the last 5 years

Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 5,487.9 MM
INVENTORY TURNOVER RATIO(HY) Highest at 1.89 times
NET SALES(Q) At CNY 10,828.01 MM has Grown at 27.51%

With ROE of 4.70%, it has a expensive valuation with a 3.29 Price to Book Value

Over the past year, while the stock has generated a return of -0.24%, its profits have risen by 5.5% ; the PEG ratio of the company is 12.9
At the current price, the company has a high dividend yield of 0.5

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.17% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -0.24% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to AVIC Xi'an Aircraft Industry Group 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 Xi'an Aircraft Industry Group Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

AVIC Xi'an Aircraft Industry Group Co., Ltd.

1.98%

-0.10

34.51%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.30%

EBIT Growth (5y)

1.25%

EBIT to Interest (avg)

12.32

Debt to EBITDA (avg)

1.72

Net Debt to Equity (avg)

-0.32

Sales to Capital Employed (avg)

1.48

Tax Ratio

13.82%

Dividend Payout Ratio

32.47%

Pledged Shares

Institutional Holding

ROCE (avg)

4.56%

ROE (avg)

4.56%

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

3.29

EV to EBIT

82.44

EV to EBITDA

36.06

EV to Capital Employed

3.36

EV to Sales

1.67

PEG Ratio

12.85

Dividend Yield

0.47%

ROCE (Latest)

4.08%

ROE (Latest)

4.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 5,487.9 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.89 times

NET SALES(Q)

At CNY 10,828.01 MM has Grown at 27.51%

-3What is not working for the Company

INTEREST(Q)

At CNY 6.02 MM has Grown at 142.25%

RAW MATERIAL COST(Y)

Grown by 48.05% (YoY

Here's what is working for AVIC Xi'an Aircraft Industry Group Co., Ltd.

Operating Cash Flow

Highest at CNY 5,487.9 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)

Inventory Turnover Ratio

Highest at 1.89 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

At CNY 10,828.01 MM has Grown at 27.51%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for AVIC Xi'an Aircraft Industry Group Co., Ltd.

Interest

At CNY 6.02 MM has Grown at 142.25%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 48.05% (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