Why is Changchun FAWAY Automobile Components Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 16.23%
- The company has been able to generate a Return on Capital Employed (avg) of 16.23% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of -2.65% and Operating profit at -12.58% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 12.15% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -2.65% and Operating profit at -12.58% over the last 5 years
4
With a fall in Net Profit of -20.2%, the company declared Very Negative results in Jun 26
- The company has declared negative results for the last 3 consecutive quarters
- ROCE(HY) Lowest at 4.56%
- PRE-TAX PROFIT(Q) Lowest at CNY 115.58 MM
- NET PROFIT(Q) Lowest at CNY 65.34 MM
5
With ROE of 8.56%, it has a attractive valuation with a 0.62 Price to Book Value
- Over the past year, while the stock has generated a return of -23.39%, its profits have fallen by -7%
- At the current price, the company has a high dividend yield of 9.9
How much should you hold?
- Overall Portfolio exposure to Changchun FAWAY Automobile Components Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Auto Components & Equipments should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Changchun FAWAY Automobile Components Co., Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Changchun FAWAY Automobile Components Co., Ltd.
-23.26%
-0.15
28.96%
China Shanghai Composite
3.23%
0.23
14.72%
Quality key factors
Factor
Value
Sales Growth (5y)
-2.65%
EBIT Growth (5y)
-12.58%
EBIT to Interest (avg)
17.06
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.63
Sales to Capital Employed (avg)
1.65
Tax Ratio
18.44%
Dividend Payout Ratio
83.08%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
13.71%
ROE (avg)
12.15%
Valuation Key Factors 
Factor
Value
P/E Ratio
7
Industry P/E
Price to Book Value
0.62
EV to EBIT
-0.03
EV to EBITDA
-0.01
EV to Capital Employed
-0.00
EV to Sales
-0.00
PEG Ratio
NA
Dividend Yield
9.91%
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
8.56%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Movement
2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -6.96% (YoY
CASH AND EQV(HY)
Highest at CNY 19,548.23 MM
-35What is not working for the Company
ROCE(HY)
Lowest at 4.56%
PRE-TAX PROFIT(Q)
Lowest at CNY 115.58 MM
NET PROFIT(Q)
Lowest at CNY 65.34 MM
INVENTORY TURNOVER RATIO(HY)
Lowest at 34.43 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.26 times
NET SALES(Q)
Lowest at CNY 3,233.03 MM
OPERATING PROFIT(Q)
Lowest at CNY 245.81 MM
Here's what is working for Changchun FAWAY Automobile Components Co., Ltd.
Cash and Eqv
Highest at CNY 19,548.23 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -6.96% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Changchun FAWAY Automobile Components Co., Ltd.
Net Sales
At CNY 3,233.03 MM has Fallen at -32%
over average net sales of the previous four periods of CNY 4,754.29 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Pre-Tax Profit
Lowest at CNY 115.58 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
Lowest at CNY 65.34 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Net Sales
Lowest at CNY 3,233.03 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY 245.81 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Pre-Tax Profit
At CNY 115.58 MM has Fallen at -34.48%
over average net sales of the previous four periods of CNY 176.42 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 65.34 MM has Fallen at -41.66%
over average net sales of the previous four periods of CNY 111.99 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
Inventory Turnover Ratio
Lowest at 34.43 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 3.26 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Non Operating Income
Highest at CNY 0.68 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






