Beijing Worldia Diamond Tools Co., Ltd. (688028) 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 Worldia Diamond Tools Co., Ltd.

Why is Beijing Worldia Diamond Tools Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 6.56%

The company has been able to generate a Return on Capital Employed (avg) of 6.56% signifying low profitability per unit of total capital (equity and debt)

The company has declared Negative results for the last 3 consecutive quarters

ROCE(HY) Lowest at 4.83%
CASH AND EQV(HY) Lowest at CNY 372.03 MM
OPERATING PROFIT(Q) Lowest at CNY 28.23 MM

With ROE of 4.48%, it has a expensive valuation with a 4.18 Price to Book Value

Over the past year, while the stock has generated a return of 395.90%, its profits have fallen by -23.3%
At the current price, the company has a high dividend yield of 0.8

Market Beating performance in long term as well as near term

Along with generating 395.90% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Beijing Worldia Diamond Tools 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 Beijing Worldia Diamond Tools Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Beijing Worldia Diamond Tools Co., Ltd.

453.64%

7.34

82.00%

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)

24.63%

EBIT Growth (5y)

13.55%

EBIT to Interest (avg)

47.34

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

0.33

Tax Ratio

11.02%

Dividend Payout Ratio

39.96%

Pledged Shares

Institutional Holding

ROCE (avg)

6.56%

ROE (avg)

5.12%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

144

Industry P/E

Price to Book Value

7.20

EV to EBIT

144.04

EV to EBITDA

77.80

EV to Capital Employed

7.58

EV to Sales

18.15

PEG Ratio

23.06

Dividend Yield

0.43%

ROCE (Latest)

5.27%

ROE (Latest)

5.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

9What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -15.19% (YoY

NET SALES(Q)

At CNY 197.56 MM has Grown at 29.18%

PRE-TAX PROFIT(Q)

Highest at CNY 32.12 MM

NET PROFIT(Q)

Highest at CNY 28.35 MM

EPS(Q)

Highest at CNY 0.19

-2What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY 29.85 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 15.11 %

Here's what is working for Beijing Worldia Diamond Tools Co., Ltd.

Net Sales

At CNY 197.56 MM has Grown at 29.18%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 32.12 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 28.35 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.19

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -15.19% (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 Worldia Diamond Tools Co., Ltd.

Operating Profit

Lowest at CNY 29.85 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 15.11 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales