Chacha Food Co., Ltd. (002557) 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

Chacha Food Co., Ltd.

Why is Chacha Food Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 6.31% and Operating profit at -2.50% over the last 5 years

OPERATING CASH FLOW(Y) Lowest at CNY 744.34 MM
INTEREST(HY) At CNY 32.2 MM has Grown at 9.5%
ROCE(HY) Lowest at 12.08%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -32.29% 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 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 FMCG)

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

Is Chacha Food Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chacha Food Co., Ltd.

-28.97%

-1.07

26.57%

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)

6.31%

EBIT Growth (5y)

-2.50%

EBIT to Interest (avg)

18.64

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.43

Sales to Capital Employed (avg)

0.89

Tax Ratio

21.86%

Dividend Payout Ratio

76.18%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

31.73%

ROE (avg)

16.60%

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

2.10

EV to EBIT

14.17

EV to EBITDA

10.96

EV to Capital Employed

2.82

EV to Sales

1.28

PEG Ratio

Dividend Yield

6.02%

ROCE (Latest)

19.92%

ROE (Latest)

11.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

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

1What is working for the Company

NO KEY POSITIVE TRIGGERS

-32What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 744.34 MM

INTEREST(HY)

At CNY 32.2 MM has Grown at 9.5%

ROCE(HY)

Lowest at 12.08%

DEBTORS TURNOVER RATIO(HY)

Lowest at 21.23%

INTEREST COVERAGE RATIO(Q)

Lowest at 319.22

RAW MATERIAL COST(Y)

Grown by 36.42% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -42.6 %

NET SALES(Q)

Fallen at -13.59%

OPERATING PROFIT(Q)

Lowest at CNY 48.83 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.13 %

PRE-TAX PROFIT(Q)

Lowest at CNY 98.19 MM

NET PROFIT(Q)

Lowest at CNY 79.12 MM

EPS(Q)

Lowest at CNY 0.16

Here's what is not working for Chacha Food Co., Ltd.

Pre-Tax Profit

At CNY 98.19 MM has Fallen at -66.71%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 79.12 MM has Fallen at -66.88%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 744.34 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 Coverage Ratio

Lowest at 319.22

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 32.2 MM has Grown at 9.5%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 21.23% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Fallen at -13.59%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 48.83 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.13 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 98.19 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 79.12 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.16

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at -42.6 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 36.42% (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 0.67 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income