Bichamp Cutting Technology (Hunan) Co., Ltd. (002843) 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

Bichamp Cutting Technology (Hunan) Co., Ltd.

Why is Bichamp Cutting Technology (Hunan) Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 32.76% and Operating profit at 9.06% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 114.24 MM
NET SALES(9M) At CNY 1,141.75 MM has Grown at -12.27%
DEBT-EQUITY RATIO (HY) Highest at 10.08 %

With ROE of 4.84%, it has a very expensive valuation with a 4.14 Price to Book Value

Over the past year, while the stock has generated a return of -3.48%, its profits have fallen by -29.8%
At the current price, the company has a high dividend yield of 0.2

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 -3.48% returns

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 Industrial Manufacturing)

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

Is Bichamp Cutting Technology (Hunan) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Bichamp Cutting Technology (Hunan) Co., Ltd.

-5.46%

0.90

53.92%

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)

32.76%

EBIT Growth (5y)

9.06%

EBIT to Interest (avg)

9.47

Debt to EBITDA (avg)

1.38

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.89

Tax Ratio

24.58%

Dividend Payout Ratio

49.93%

Pledged Shares

Institutional Holding

ROCE (avg)

7.90%

ROE (avg)

10.55%

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

4.14

EV to EBIT

86.00

EV to EBITDA

33.36

EV to Capital Employed

3.97

EV to Sales

3.63

PEG Ratio

Dividend Yield

0.22%

ROCE (Latest)

4.61%

ROE (Latest)

4.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

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

7What is working for the Company

NET PROFIT(Q)

At CNY 17.29 MM has Grown at 649.47%

RAW MATERIAL COST(Y)

Fallen by -61.57% (YoY

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 114.24 MM

NET SALES(9M)

At CNY 1,141.75 MM has Grown at -12.27%

DEBT-EQUITY RATIO (HY)

Highest at 10.08 %

INTEREST(Q)

At CNY 2.49 MM has Grown at 73.56%

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.08 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.82 times

OPERATING PROFIT(Q)

Lowest at CNY 18.55 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.81 %

Here's what is working for Bichamp Cutting Technology (Hunan) Co., Ltd.

Net Profit

At CNY 17.29 MM has Grown at 649.47%

over average net sales of the previous four periods of CNY 2.31 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -61.57% (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 Bichamp Cutting Technology (Hunan) Co., Ltd.

Interest

At CNY 2.49 MM has Grown at 73.56%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 10.08 % 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

Net Sales

At CNY 1,141.75 MM has Grown at -12.27%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 114.24 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 18.55 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.81 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 5.08 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 2.82 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio