Baota Industry Co., Ltd. (000595) 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

Baota Industry Co., Ltd.

Why is Baota Industry Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0%

Poor long term growth as Net Sales has grown by an annual rate of 6.34% and Operating profit at 3.56% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With a growth in Net Sales of 125.72%, the company declared Outstanding results in Sep 25

The company has declared positive results in Jan 70 after 6 consecutive negative quarters
OPERATING CASH FLOW(Y) Highest at CNY 357.43 MM
ROCE(HY) Highest at -7.72%
RAW MATERIAL COST(Y) Fallen by 0% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 2.88%, its profits have risen by 33.7%

Underperformed the market in the last 1 year

The stock has generated a return of 2.88% in the last 1 year, much lower than market (China Shanghai Composite) returns of 17.07%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Baota Industry 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 Baota Industry Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Baota Industry Co., Ltd.

2.88%

2.29

36.66%

China Shanghai Composite

16.67%

1.14

14.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.34%

EBIT Growth (5y)

3.56%

EBIT to Interest (avg)

-16.27

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

0.34

Tax Ratio

0.10%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

1.78%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

14.46

EV to EBIT

-32.90

EV to EBITDA

-38.42

EV to Capital Employed

10.74

EV to Sales

25.30

PEG Ratio

Dividend Yield

ROCE (Latest)

-32.66%

ROE (Latest)

-18.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly 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

26What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 357.43 MM

ROCE(HY)

Highest at -7.72%

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

CASH AND EQV(HY)

Highest at CNY 638.82 MM

NET SALES(Q)

Highest at CNY 168.5 MM

OPERATING PROFIT(Q)

Highest at CNY 0 MM

OPERATING PROFIT MARGIN(Q)

Highest at 0 %

PRE-TAX PROFIT(Q)

At CNY 0 MM has Grown at 100%

-5What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 1,121.64 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.73 times

Here's what is working for Baota Industry Co., Ltd.

Net Sales

At CNY 168.5 MM has Grown at 197.2%

over average net sales of the previous four periods of CNY 56.7 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 357.43 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)

Net Sales

Highest at CNY 168.5 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 0 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 0 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At CNY 0 MM has Grown at 100%

over average net sales of the previous four periods of CNY -17.35 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 638.82 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0% (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 Baota Industry Co., Ltd.

Debt-Equity Ratio

Highest at 1,121.64 %

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 0 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 0.73 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio