Bohai Water Industry Co. Ltd. (000605) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bohai Water Industry Co. Ltd.

Why is Bohai Water Industry Co. Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.89%

Poor long term growth as Net Sales has grown by an annual rate of -4.19% and Operating profit at -12.01% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

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

NET PROFIT(9M) At CNY 17.79 MM has Grown at -31.37%
INTEREST(9M) At CNY 107.33 MM has Grown at 12.79%
NET SALES(9M) At CNY 1,339.72 MM has Grown at -10.93%

With ROE of 1.33%, it has a very expensive valuation with a 0.88 Price to Book Value

Over the past year, while the stock has generated a return of 1.90%, its profits have fallen by -29.1%
At the current price, the company has a high dividend yield of 0.4

Underperformed the market in the last 1 year

The stock has generated a return of 1.90% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.18%

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 Other Utilities)

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

Is Bohai Water Industry Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Bohai Water Industry Co. Ltd.

-22.2%

1.32

46.12%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.19%

EBIT Growth (5y)

-12.01%

EBIT to Interest (avg)

0.92

Debt to EBITDA (avg)

7.93

Net Debt to Equity (avg)

1.27

Sales to Capital Employed (avg)

0.33

Tax Ratio

54.57%

Dividend Payout Ratio

43.86%

Pledged Shares

Institutional Holding

ROCE (avg)

2.89%

ROE (avg)

1.47%

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

0.88

EV to EBIT

38.04

EV to EBITDA

13.31

EV to Capital Employed

0.95

EV to Sales

2.92

PEG Ratio

Dividend Yield

0.38%

ROCE (Latest)

2.49%

ROE (Latest)

1.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

OBV

Mildly 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

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -10.69% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 17.93%

PRE-TAX PROFIT(Q)

Highest at CNY 36.92 MM

NET PROFIT(Q)

Highest at CNY 18.03 MM

EPS(Q)

Highest at CNY 0.05

-16What is not working for the Company

NET PROFIT(9M)

At CNY 17.79 MM has Grown at -31.37%

INTEREST(9M)

At CNY 107.33 MM has Grown at 12.79%

NET SALES(9M)

At CNY 1,339.72 MM has Grown at -10.93%

CASH AND EQV(HY)

Lowest at CNY 697.38 MM

OPERATING PROFIT(Q)

Lowest at CNY 57.97 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.79 %

Here's what is working for Bohai Water Industry Co. Ltd.

Pre-Tax Profit

Highest at CNY 36.92 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 18.03 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 17.93%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -10.69% (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 Water Industry Co. Ltd.

Interest

At CNY 71.2 MM has Grown at 13.56%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 1,076.08 MM has Grown at -11.52%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 57.97 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 10.79 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 697.38 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents