Changzheng Engineering Technology Co., Ltd. (603698) 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

Changzheng Engineering Technology Co., Ltd.

Why is Changzheng Engineering Technology Co., Ltd. ?

Flat results in Sep 25

INTEREST(Q) At CNY 5.7 MM has Grown at 11.33%
DEBT-EQUITY RATIO (HY) Highest at -10.27 %
OPERATING PROFIT MARGIN(Q) Lowest at 5.04 %

With ROE of 8.32%, it has a expensive valuation with a 3.34 Price to Book Value

Over the past year, while the stock has generated a return of 102.95%, its profits have risen by 32% ; the PEG ratio of the company is 1.3
At the current price, the company has a high dividend yield of 0.8

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Changzheng Engineering Technology 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 Changzheng Engineering Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Changzheng Engineering Technology Co., Ltd.

161.59%

3.36

53.76%

China Shanghai Composite

24.7%

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)

21.01%

EBIT Growth (5y)

20.58%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

0.79

Tax Ratio

13.80%

Dividend Payout Ratio

30.59%

Pledged Shares

Institutional Holding

ROCE (avg)

10.07%

ROE (avg)

6.34%

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

3.34

EV to EBIT

45.63

EV to EBITDA

30.14

EV to Capital Employed

3.73

EV to Sales

2.58

PEG Ratio

1.25

Dividend Yield

0.76%

ROCE (Latest)

8.16%

ROE (Latest)

8.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

13What is working for the Company

NET SALES(Q)

At CNY 999.62 MM has Grown at 77.42%

RAW MATERIAL COST(Y)

Fallen by -73.95% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 11.26 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.16 times

-13What is not working for the Company

INTEREST(Q)

At CNY 5.7 MM has Grown at 11.33%

DEBT-EQUITY RATIO (HY)

Highest at -10.27 %

OPERATING PROFIT MARGIN(Q)

Lowest at 5.04 %

PRE-TAX PROFIT(Q)

Lowest at CNY 55.89 MM

Here's what is working for Changzheng Engineering Technology Co., Ltd.

Net Sales

At CNY 999.62 MM has Grown at 77.42%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 11.26 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.16 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -73.95% (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 Changzheng Engineering Technology Co., Ltd.

Interest

At CNY 5.7 MM has Grown at 11.33%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 5.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 55.89 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at -10.27 %

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