Changhong Meiling Co., Ltd. (000521) 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

Changhong Meiling Co., Ltd.

Why is Changhong Meiling Co., Ltd. ?

Flat results in Sep 25

INTEREST(HY) At CNY 19.59 MM has Grown at 41.1%
NET PROFIT(HY) At CNY 273.91 MM has Grown at -23.03%
ROCE(HY) Lowest at 10.7%

With ROE of 10.01%, it has a fair valuation with a 1.12 Price to Book Value

Over the past year, while the stock has generated a return of -28.97%, its profits have fallen by -23.7%
At the current price, the company has a high dividend yield of 4.2

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 13.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -28.97% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Changhong Meiling Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Changhong Meiling Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Changhong Meiling Co., Ltd.

-26.16%

-1.32

25.66%

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)

15.99%

EBIT Growth (5y)

25.01%

EBIT to Interest (avg)

8.41

Debt to EBITDA (avg)

1.12

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

1.86

Tax Ratio

11.90%

Dividend Payout Ratio

48.60%

Pledged Shares

Institutional Holding

ROCE (avg)

4.26%

ROE (avg)

7.41%

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

1.12

EV to EBIT

16.16

EV to EBITDA

8.04

EV to Capital Employed

1.14

EV to Sales

0.19

PEG Ratio

Dividend Yield

4.22%

ROCE (Latest)

7.07%

ROE (Latest)

10.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,870.73 MM

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

CASH AND EQV(HY)

Highest at CNY 23,380.98 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 8.22 times

-14What is not working for the Company

INTEREST(HY)

At CNY 19.59 MM has Grown at 41.1%

NET PROFIT(HY)

At CNY 273.91 MM has Grown at -23.03%

ROCE(HY)

Lowest at 10.7%

EPS(Q)

Lowest at CNY 0.07

Here's what is working for Changhong Meiling Co., Ltd.

Operating Cash Flow

Highest at CNY 2,870.73 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 23,380.98 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 8.22 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 0% (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 Changhong Meiling Co., Ltd.

Interest

At CNY 19.59 MM has Grown at 41.1%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 273.91 MM has Grown at -23.03%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.07

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)