Bohai Automotive Systems Co., Ltd. (600960) 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

Bohai Automotive Systems Co., Ltd.

Why is Bohai Automotive Systems Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -6.68% and Operating profit at -260.22% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 0.15% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -6.68% and Operating profit at -260.22% over the last 5 years

The company has declared Negative results for the last 8 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 3.83 MM
INTEREST(Q) At CNY 15.22 MM has Grown at 116.86%
CASH AND EQV(HY) Lowest at CNY 1,109 MM

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Bohai Automotive 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 Bohai Automotive Systems Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Bohai Automotive Systems Co., Ltd.

22.3%

1.39

56.31%

China Shanghai Composite

24.7%

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)

-6.68%

EBIT Growth (5y)

-260.22%

EBIT to Interest (avg)

-3.56

Debt to EBITDA (avg)

4.06

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

0.72

Tax Ratio

0.55%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.15%

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

1.24

EV to EBIT

-4.76

EV to EBITDA

-6.05

EV to Capital Employed

1.18

EV to Sales

1.38

PEG Ratio

Dividend Yield

ROCE (Latest)

-24.73%

ROE (Latest)

-34.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

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

14What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -188.62% (YoY

PRE-TAX PROFIT(Q)

At CNY -94.13 MM has Grown at 57.37%

NET PROFIT(Q)

At CNY -91.37 MM has Grown at 56.83%

-21What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 3.83 MM

INTEREST(Q)

At CNY 15.22 MM has Grown at 116.86%

CASH AND EQV(HY)

Lowest at CNY 1,109 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.17 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.41 times

NET SALES(Q)

Lowest at CNY 649.31 MM

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

Pre-Tax Profit

At CNY -94.13 MM has Grown at 57.37%

over average net sales of the previous four periods of CNY -220.82 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -91.37 MM has Grown at 56.83%

over average net sales of the previous four periods of CNY -211.64 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -188.62% (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 Bohai Automotive Systems Co., Ltd.

Net Sales

At CNY 649.31 MM has Fallen at -27.95%

over average net sales of the previous four periods of CNY 901.18 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 3.83 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

At CNY 15.22 MM has Grown at 116.86%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 649.31 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 1,109 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 3.17 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 2.41 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio