Changshu Fengfan Power Equipment Co. Ltd. (601700) 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

Changshu Fengfan Power Equipment Co. Ltd.

Why is Changshu Fengfan Power Equipment Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 3.57%

The company has been able to generate a Return on Capital Employed (avg) of 3.57% signifying low profitability per unit of total capital (equity and debt)

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 0.31% and Operating profit at -201.75% 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 3.92% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 0.31% and Operating profit at -201.75% over the last 5 years

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

NET SALES(9M) At CNY 2,025.56 MM has Grown at -20.93%
NET PROFIT(HY) At CNY 10.53 MM has Grown at -49.64%
PRE-TAX PROFIT(Q) At CNY -9.64 MM has Fallen at -915.38%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 29.05%, its profits have fallen by -451.1%
At the current price, the company has a high dividend yield of 0.4

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Changshu Fengfan Power Equipment 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 Changshu Fengfan Power Equipment Co. Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Changshu Fengfan Power Equipment Co. Ltd.

1.72%

0.59

40.99%

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)

4.83%

EBIT Growth (5y)

-208.54%

EBIT to Interest (avg)

1.08

Debt to EBITDA (avg)

4.79

Net Debt to Equity (avg)

0.58

Sales to Capital Employed (avg)

0.53

Tax Ratio

0.38%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.57%

ROE (avg)

3.92%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.63

EV to EBIT

-18.97

EV to EBITDA

-34.85

EV to Capital Employed

1.79

EV to Sales

2.43

PEG Ratio

Dividend Yield

0.40%

ROCE (Latest)

-9.44%

ROE (Latest)

-20.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 198.91 MM

NET SALES(Q)

At CNY 852.18 MM has Grown at 49.06%

RAW MATERIAL COST(Y)

Fallen by -133.82% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 17.51 MM

NET PROFIT(Q)

Highest at CNY 25.13 MM

-3What is not working for the Company

ROCE(HY)

Lowest at -13.21%

DEBT-EQUITY RATIO (HY)

Highest at 110.37 %

Here's what is working for Changshu Fengfan Power Equipment Co. Ltd.

Operating Cash Flow

Highest at CNY 198.91 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)

Net Sales

At CNY 852.18 MM has Grown at 49.06%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 17.51 MM has Grown at 122.49%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 25.13 MM has Grown at 165.41%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 17.51 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 25.13 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -133.82% (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 Changshu Fengfan Power Equipment Co. Ltd.

Debt-Equity Ratio

Highest at 110.37 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio