Changhua Holding Group Co., Ltd. (605018) 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

Changhua Holding Group Co., Ltd.

Why is Changhua Holding Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 7.62% and Operating profit at -32.24% over the last 5 years

Negative results in Sep 25

NET PROFIT(9M) At CNY 60.93 MM has Grown at -32.33%
NET SALES(9M) At CNY 1,489.22 MM has Grown at -9.81%
DEBTORS TURNOVER RATIO(HY) Lowest at 5.21 times

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -3.37% returns

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 Auto Components & Equipments)

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

Is Changhua Holding Group Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Changhua Holding Group Co., Ltd.

-19.88%

0.60

44.25%

China Shanghai Composite

13.33%

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)

7.62%

EBIT Growth (5y)

-32.24%

EBIT to Interest (avg)

15.14

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

0.79

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

62.21%

Pledged Shares

Institutional Holding

ROCE (avg)

2.66%

ROE (avg)

5.55%

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

2.07

EV to EBIT

171.87

EV to EBITDA

24.94

EV to Capital Employed

2.15

EV to Sales

2.72

PEG Ratio

Dividend Yield

1.27%

ROCE (Latest)

1.25%

ROE (Latest)

3.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.57% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -10.53 %

PRE-TAX PROFIT(Q)

Highest at CNY 23.79 MM

-10What is not working for the Company

NET PROFIT(9M)

At CNY 60.93 MM has Grown at -32.33%

NET SALES(9M)

At CNY 1,489.22 MM has Grown at -9.81%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.21 times

OPERATING PROFIT(Q)

Lowest at CNY 19 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.47 %

Here's what is working for Changhua Holding Group Co., Ltd.

Pre-Tax Profit

Highest at CNY 23.79 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Lowest at -10.53 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 1.57% (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 Changhua Holding Group Co., Ltd.

Net Profit

At CNY 60.93 MM has Grown at -32.33%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 1,489.22 MM has Grown at -9.81%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 19 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.47 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 5.21 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio