CCCC Design & Consulting Group Co., Ltd. (600720) 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

CCCC Design & Consulting Group Co., Ltd.

Why is CCCC Design & Consulting Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 8.83% and Operating profit at -3.60% over the last 5 years

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

INTEREST(HY) At CNY 27.92 MM has Grown at 28.81%
NET SALES(9M) At CNY 6,115.66 MM has Grown at -9.09%
INTEREST COVERAGE RATIO(Q) Lowest at 1,370.77

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -16.84% 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 CCCC Design & Consulting Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

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

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

Is CCCC Design & Consulting Group Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

CCCC Design & Consulting Group Co., Ltd.

-16.1%

-1.19

21.27%

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)

8.83%

EBIT Growth (5y)

-3.60%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

0.84

Tax Ratio

14.23%

Dividend Payout Ratio

27.72%

Pledged Shares

Institutional Holding

ROCE (avg)

19.37%

ROE (avg)

14.11%

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

1.14

EV to EBIT

6.78

EV to EBITDA

6.11

EV to Capital Employed

1.22

EV to Sales

1.02

PEG Ratio

Dividend Yield

1.03%

ROCE (Latest)

17.98%

ROE (Latest)

11.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 324.4 MM

CASH AND EQV(HY)

Highest at CNY 13,281.85 MM

-20What is not working for the Company

INTEREST(HY)

At CNY 27.92 MM has Grown at 28.81%

NET SALES(9M)

At CNY 6,115.66 MM has Grown at -9.09%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,370.77

PRE-TAX PROFIT(Q)

At CNY 241.88 MM has Fallen at -39.6%

NET PROFIT(Q)

At CNY 195.46 MM has Fallen at -44.57%

RAW MATERIAL COST(Y)

Grown by 24.98% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.96 times

Here's what is working for CCCC Design & Consulting Group Co., Ltd.

Operating Cash Flow

Highest at CNY 324.4 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 13,281.85 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for CCCC Design & Consulting Group Co., Ltd.

Interest

At CNY 27.92 MM has Grown at 28.81%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,370.77

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 241.88 MM has Fallen at -39.6%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 195.46 MM has Fallen at -44.57%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 6,115.66 MM has Grown at -9.09%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 0.96 times

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 24.98% (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

Non Operating Income

Highest at CNY 0.41 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income