Bethel Automotive Safety Systems Co., Ltd. (603596) 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

Bethel Automotive Safety Systems Co., Ltd.

Why is Bethel Automotive Safety Systems Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 17.95%

The company has been able to generate a Return on Capital Employed (avg) of 17.95% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 30.15% and Operating profit at 21.77% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 16.90% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 30.15% and Operating profit at 21.77% over the last 5 years

Flat results in Jun 26

INTEREST(HY) At CNY 36.56 MM has Grown at 2,818.97%
DEBT-EQUITY RATIO (HY) Highest at 17.81 %
INVENTORY TURNOVER RATIO(HY) Lowest at 5.28 times

With ROE of 15.58%, it has a fair valuation with a 2.58 Price to Book Value

Over the past year, while the stock has generated a return of -15.74%, its profits have risen by 0.5% ; the PEG ratio of the company is 16.6
At the current price, the company has a high dividend yield of 0.5

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Bethel Automotive Safety Systems Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Bethel Automotive Safety Systems Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Bethel Automotive Safety Systems Co., Ltd.

-19.25%

-0.40

53.83%

China Shanghai Composite

3.0%

0.22

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

30.15%

EBIT Growth (5y)

21.77%

EBIT to Interest (avg)

42.71

Debt to EBITDA (avg)

0.13

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.04

Tax Ratio

13.57%

Dividend Payout Ratio

17.59%

Pledged Shares

Institutional Holding

ROCE (avg)

16.06%

ROE (avg)

16.90%

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

2.58

EV to EBIT

16.44

EV to EBITDA

13.74

EV to Capital Employed

2.40

EV to Sales

1.85

PEG Ratio

16.55

Dividend Yield

0.49%

ROCE (Latest)

14.59%

ROE (Latest)

15.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

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

7What is working for the Company

NET SALES(Q)

At CNY 3,597.58 MM has Grown at 42.43%

RAW MATERIAL COST(Y)

Fallen by -2.32% (YoY

CASH AND EQV(HY)

Highest at CNY 10,007.54 MM

-12What is not working for the Company

INTEREST(HY)

At CNY 36.56 MM has Grown at 2,818.97%

DEBT-EQUITY RATIO (HY)

Highest at 17.81 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.28 times

OPERATING PROFIT MARGIN(Q)

Lowest at 12.02 %

Here's what is working for Bethel Automotive Safety Systems Co., Ltd.

Net Sales

At CNY 3,597.58 MM has Grown at 42.43%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 10,007.54 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -2.32% (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 Bethel Automotive Safety Systems Co., Ltd.

Interest

At CNY 36.56 MM has Grown at 2,818.97%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 17.81 % 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 Margin

Lowest at 12.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 5.28 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at CNY 0.23 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income

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