Canggang Railway Ltd. (2169) 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

Infinity Logistics & Transport Ventures Ltd.

Guangshen Railway Co., Ltd.

Canggang Railway Ltd.

Why is Canggang Railway Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -10.63% and Operating profit at -14.70% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Dec 24

INTEREST COVERAGE RATIO(Q) Lowest at 316.53
PRE-TAX PROFIT(Q) Lowest at HKD 30.1 MM
RAW MATERIAL COST(Y) Grown by 10.36% (YoY)

With ROE of 5.29%, it has a Very Expensive valuation with a 6.46 Price to Book Value

Over the past year, while the stock has generated a return of -46.21%, its profits have fallen by -32.4%

Below par performance in long term as well as near term

Along with generating -46.21% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in the last 3 years, 1 year and 3 months

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 Construction)

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

Is Canggang Railway Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Canggang Railway Ltd.

-47.79%

-0.59

54.63%

Hang Seng Hong Kong

27.36%

1.03

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-10.63%

EBIT Growth (5y)

-14.70%

EBIT to Interest (avg)

3.83

Debt to EBITDA (avg)

2.39

Net Debt to Equity (avg)

0.47

Sales to Capital Employed (avg)

0.25

Tax Ratio

28.15%

Dividend Payout Ratio

41.40%

Pledged Shares

Institutional Holding

ROCE (avg)

9.08%

ROE (avg)

8.07%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

122

Industry P/E

Price to Book Value

6.46

EV to EBIT

81.13

EV to EBITDA

52.49

EV to Capital Employed

4.72

EV to Sales

20.48

PEG Ratio

Dividend Yield

0.19%

ROCE (Latest)

5.82%

ROE (Latest)

5.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

Not enough Data to analyse Financial Trend

Here's what is not working for Canggang Railway Ltd.

Interest Coverage Ratio

Lowest at 316.53

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

Lowest at HKD 30.1 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (HKD MM)

Net Sales

Lowest at HKD 137.64 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Net Sales

Fallen at -25.4%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Operating Profit

Lowest at HKD 46.88 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 34.06 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at HKD 21.41 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Debtors Turnover Ratio

Lowest at 2.6%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 10.36% (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