Bright Dairy & Food Co., Ltd. (600597) 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

Bright Dairy & Food Co., Ltd.

Why is Bright Dairy & Food Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -0.05% and Operating profit at -11.25% over the last 5 years

Negative results in Sep 25

PRE-TAX PROFIT(Q) At CNY -174.05 MM has Fallen at -216.9%
NET PROFIT(Q) At CNY -129.83 MM has Fallen at -167.83%
RAW MATERIAL COST(Y) Grown by 13.55% (YoY)

With ROE of 5.93%, it has a attractive valuation with a 1.17 Price to Book Value

Over the past year, while the stock has generated a return of -3.65%, its profits have fallen by -16.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.65% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Bright Dairy & Food Co., Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Bright Dairy & Food Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Bright Dairy & Food Co., Ltd.

-13.46%

-0.26

20.07%

China Shanghai Composite

15.17%

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)

-0.05%

EBIT Growth (5y)

-11.25%

EBIT to Interest (avg)

4.81

Debt to EBITDA (avg)

0.26

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

2.11

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

30.55%

Pledged Shares

Institutional Holding

ROCE (avg)

8.31%

ROE (avg)

8.11%

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

1.17

EV to EBIT

51.57

EV to EBITDA

7.00

EV to Capital Employed

1.18

EV to Sales

0.46

PEG Ratio

Dividend Yield

1.89%

ROCE (Latest)

2.29%

ROE (Latest)

5.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,295.68 MM

DEBT-EQUITY RATIO (HY)

Lowest at 8.68 %

INVENTORY TURNOVER RATIO(HY)

Highest at 6.9 times

-11What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -174.05 MM has Fallen at -216.9%

NET PROFIT(Q)

At CNY -129.83 MM has Fallen at -167.83%

RAW MATERIAL COST(Y)

Grown by 13.55% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -102.91 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1.79 %

Here's what is working for Bright Dairy & Food Co., Ltd.

Operating Cash Flow

Highest at CNY 1,295.68 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at 8.68 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 6.9 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Bright Dairy & Food Co., Ltd.

Pre-Tax Profit

At CNY -174.05 MM has Fallen at -216.9%

over average net sales of the previous four periods of CNY 148.89 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -129.83 MM has Fallen at -167.83%

over average net sales of the previous four periods of CNY 191.4 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -102.91 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -1.79 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 13.55% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales