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

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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 -2.41% and Operating profit at -221.97% 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 -2.41% and Operating profit at -221.97% over the last 5 years

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

INTEREST(HY) At CNY 49.18 MM has Grown at 17.38%
NET SALES(Q) At CNY 565.74 MM has Fallen at -42.86%
PRE-TAX PROFIT(Q) At CNY -77.83 MM has Fallen at -171.57%

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 -3.56%, 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 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 Electronics & Appliances)

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

Is Changshu Fengfan Power Equipment Co. Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Changshu Fengfan Power Equipment Co. Ltd.

-3.56%

0.19

29.33%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.41%

EBIT Growth (5y)

-221.97%

EBIT to Interest (avg)

1.08

Debt to EBITDA (avg)

4.79

Net Debt to Equity (avg)

0.58

Sales to Capital Employed (avg)

0.55

Tax Ratio

0.38%

Dividend Payout Ratio

25.03%

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

2.02

EV to EBIT

-12.96

EV to EBITDA

-22.39

EV to Capital Employed

1.61

EV to Sales

2.63

PEG Ratio

Dividend Yield

0.43%

ROCE (Latest)

-12.45%

ROE (Latest)

-22.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

1What is working for the Company

CASH AND EQV(HY)

Highest at CNY 4,611.15 MM

-39What is not working for the Company

INTEREST(HY)

At CNY 49.18 MM has Grown at 17.38%

NET SALES(Q)

At CNY 565.74 MM has Fallen at -42.86%

PRE-TAX PROFIT(Q)

At CNY -77.83 MM has Fallen at -171.57%

NET PROFIT(Q)

At CNY -38.42 MM has Fallen at -159.6%

ROCE(HY)

Lowest at -0.59%

RAW MATERIAL COST(Y)

Grown by 59.92% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.66%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.23%

EPS(Q)

Lowest at CNY -0.04

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

Cash and Eqv

Highest at CNY 4,611.15 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Changshu Fengfan Power Equipment Co. Ltd.

Net Sales

At CNY 565.74 MM has Fallen at -42.86%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -77.83 MM has Fallen at -171.57%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -38.42 MM has Fallen at -159.6%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 49.18 MM has Grown at 17.38%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 565.74 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

EPS

Lowest at CNY -0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 2.66%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 1.23%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 59.92% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales