Beijing Emerging Eastern Aviation Equipment Co., Ltd. (002933) 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

Beijing Emerging Eastern Aviation Equipment Co., Ltd.

Why is Beijing Emerging Eastern Aviation Equipment Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.31%

The company has been able to generate a Return on Capital Employed (avg) of 2.31% 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 6.54% and Operating profit at -13.14% over the last 5 years

Flat results in Mar 26

NET SALES(Q) At CNY 66.77 MM has Fallen at -35.42%
DEBT-EQUITY RATIO (HY) Highest at -16.12 %
INTEREST COVERAGE RATIO(Q) Lowest at 288.41

With ROE of 1.55%, it has a very expensive valuation with a 1.26 Price to Book Value

Over the past year, while the stock has generated a return of -10.08%, its profits have risen by 12.4% ; the PEG ratio of the company is 6.5
At the current price, the company has a high dividend yield of 0.1

Below par performance in long term as well as near term

Along with generating -10.08% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Aerospace & Defense)

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

Is Beijing Emerging Eastern Aviation Equipment Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Beijing Emerging Eastern Aviation Equipment Co., Ltd.

-17.15%

0.56

34.25%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.54%

EBIT Growth (5y)

-13.14%

EBIT to Interest (avg)

5.68

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.52

Sales to Capital Employed (avg)

0.23

Tax Ratio

24.18%

Dividend Payout Ratio

5.95%

Pledged Shares

Institutional Holding

ROCE (avg)

2.31%

ROE (avg)

1.61%

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

1.26

EV to EBIT

65.03

EV to EBITDA

37.36

EV to Capital Employed

1.32

EV to Sales

4.25

PEG Ratio

6.54

Dividend Yield

0.07%

ROCE (Latest)

2.03%

ROE (Latest)

1.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

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 13.96 MM has Grown at 65.99%

RAW MATERIAL COST(Y)

Fallen by -7.67% (YoY

-12What is not working for the Company

NET SALES(Q)

At CNY 66.77 MM has Fallen at -35.42%

DEBT-EQUITY RATIO (HY)

Highest at -16.12 %

INTEREST COVERAGE RATIO(Q)

Lowest at 288.41

OPERATING PROFIT(Q)

Lowest at CNY 6.11 MM

EPS(Q)

Lowest at CNY -0.02

Here's what is working for Beijing Emerging Eastern Aviation Equipment Co., Ltd.

Net Profit

At CNY 13.96 MM has Grown at 65.99%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -7.67% (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 Beijing Emerging Eastern Aviation Equipment Co., Ltd.

Net Sales

At CNY 66.77 MM has Fallen at -35.42%

over average net sales of the previous four periods of CNY 103.39 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 288.41

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at -16.12 % and Grown

In each half year 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

Operating Profit

Lowest at CNY 6.11 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

EPS

Lowest at CNY -0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)