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.

21.05%

0.60

44.25%

China Shanghai Composite

23.91%

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)

6.78%

EBIT Growth (5y)

8.29%

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

74.18%

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

2.98

EV to EBIT

135.82

EV to EBITDA

40.23

EV to Capital Employed

3.28

EV to Sales

3.71

PEG Ratio

2.17

Dividend Yield

0.84%

ROCE (Latest)

2.41%

ROE (Latest)

3.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

9What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 8.1 MM has Grown at 361.02%

NET PROFIT(Q)

At CNY 15.43 MM has Grown at 127.15%

RAW MATERIAL COST(Y)

Fallen by -37.03% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -13.18 %

-14What is not working for the Company

INTEREST(HY)

At CNY 1.7 MM has Grown at 235.34%

INTEREST COVERAGE RATIO(Q)

Lowest at 289.96

OPERATING PROFIT(Q)

Lowest at CNY 2.89 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.64 %

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

Pre-Tax Profit

At CNY 8.1 MM has Grown at 361.02%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 15.43 MM has Grown at 127.15%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at -13.18 %

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 -37.03% (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.

Interest

At CNY 1.7 MM has Grown at 235.34%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 289.96

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 2.89 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.64 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Non Operating Income

Highest at CNY 0.77 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income