Changjiang & Jinggong Steel Building (Group) Co., Ltd. (600496) 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

Changjiang & Jinggong Steel Building (Group) Co., Ltd.

Why is Changjiang & Jinggong Steel Building (Group) Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 14.45% and Operating profit at 0.88% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 7.92% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 14.45% and Operating profit at 0.88% over the last 5 years

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 1,350.13 MM
NET SALES(9M) At CNY 14,540.8 MM has Grown at 20.71%
RAW MATERIAL COST(Y) Fallen by -4.26% (YoY)

With ROE of 6.56%, it has a very attractive valuation with a 0.78 Price to Book Value

Over the past year, while the stock has generated a return of 44.77%, its profits have risen by 31.7% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 2.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Changjiang & Jinggong Steel Building (Group) Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Changjiang & Jinggong Steel Building (Group) Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Changjiang & Jinggong Steel Building (Group) Co., Ltd.

13.13%

2.34

28.13%

China Shanghai Composite

21.43%

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)

11.90%

EBIT Growth (5y)

0.29%

EBIT to Interest (avg)

3.58

Debt to EBITDA (avg)

2.84

Net Debt to Equity (avg)

0.20

Sales to Capital Employed (avg)

1.13

Tax Ratio

8.68%

Dividend Payout Ratio

72.37%

Pledged Shares

Institutional Holding

ROCE (avg)

6.43%

ROE (avg)

7.92%

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

0.84

EV to EBIT

14.70

EV to EBITDA

12.18

EV to Capital Employed

0.87

EV to Sales

0.47

PEG Ratio

0.99

Dividend Yield

2.00%

ROCE (Latest)

5.92%

ROE (Latest)

6.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

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 -43.33% (YoY

CASH AND EQV(HY)

Highest at CNY 12,571.21 MM

DEBT-EQUITY RATIO (HY)

Lowest at 20.22 %

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 393.54 MM

INTEREST(Q)

At CNY 36.81 MM has Grown at 18.74%

Here's what is working for Changjiang & Jinggong Steel Building (Group) Co., Ltd.

Cash and Eqv

Highest at CNY 12,571.21 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 20.22 %

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 -43.33% (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 Changjiang & Jinggong Steel Building (Group) Co., Ltd.

Operating Cash Flow

Lowest at CNY 393.54 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 36.81 MM has Grown at 18.74%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)