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

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 5.49% and Operating profit at -13.15% over the last 5 years

With a fall in Net Sales of -5.91%, the company declared Very Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 450.1 MM
PRE-TAX PROFIT(Q) At CNY 120.31 MM has Fallen at -67.37%
NET PROFIT(Q) At CNY 79.22 MM has Fallen at -72.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -23.12% 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.

-21.1%

-1.45

24.88%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.49%

EBIT Growth (5y)

-13.15%

EBIT to Interest (avg)

18.64

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.43

Sales to Capital Employed (avg)

0.90

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

2.09

EV to EBIT

14.13

EV to EBITDA

10.93

EV to Capital Employed

2.81

EV to Sales

1.28

PEG Ratio

Dividend Yield

6.04%

ROCE (Latest)

19.92%

ROE (Latest)

11.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

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

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 8.35 times

-33What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 450.1 MM

PRE-TAX PROFIT(Q)

At CNY 120.31 MM has Fallen at -67.37%

NET PROFIT(Q)

At CNY 79.22 MM has Fallen at -72.7%

ROCE(HY)

Lowest at 7.23%

DEBTORS TURNOVER RATIO(HY)

Lowest at 21.18 times

RAW MATERIAL COST(Y)

Grown by 24.45% (YoY

INTEREST(Q)

Highest at CNY 51.61 MM

Here's what is working for Chacha Food Co., Ltd.

Inventory Turnover Ratio

Highest at 8.35 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 Chacha Food Co., Ltd.

Pre-Tax Profit

At CNY 120.31 MM has Fallen at -67.37%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 79.22 MM has Fallen at -72.7%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 450.1 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

At CNY 51.61 MM has Grown at 240.64%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 21.18 times 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

Interest

Highest at CNY 51.61 MM

in the last five periods and Increased by 240.64% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 24.45% (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