Cheerwin Group Ltd. () 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

Sinofert Holdings Ltd.

China BlueChemical Ltd.

China XLX Fertiliser Ltd.

Cheerwin Group Ltd.

Tianjin TEDA Biomedical Engineering Co. Ltd.

Ko Yo Chemical (Group) Ltd.

Century Sunshine Group Holdings Ltd.

Dongguang Chemical Ltd.

Why is Cheerwin Group Ltd. ?

Flat results in Dec 25

INTEREST COVERAGE RATIO(Q) Lowest at 1,031.8
INTEREST(Q) Highest at HKD 1.47 MM
OPERATING PROFIT(Q) Lowest at HKD 15.2 MM

With ROE of 1.52%, it has a Very Expensive valuation with a 0.92 Price to Book Value

Over the past year, while the stock has generated a return of -10.98%, its profits have fallen by -14.9%

Underperformed the market in the last 1 year

Even though the market (Hang Seng Hong Kong) has generated returns of 8.76% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -10.98% 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 Chemicals & Petrochemicals)

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

Is Cheerwin Group Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Cheerwin Group Ltd.

-10.98%

0.98

28.34%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.88%

EBIT Growth (5y)

121.52%

EBIT to Interest (avg)

67.87

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.95

Sales to Capital Employed (avg)

0.57

Tax Ratio

19.49%

Dividend Payout Ratio

82.68%

Pledged Shares

Institutional Holding

ROCE (avg)

78.12%

ROE (avg)

4.96%

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

0.92

EV to EBIT

5.69

EV to EBITDA

4.74

EV to Capital Employed

0.42

EV to Sales

0.36

PEG Ratio

Dividend Yield

ROCE (Latest)

7.37%

ROE (Latest)

1.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

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

6What is working for the Company

ROCE(HY)

Highest at 7.37%

RAW MATERIAL COST(Y)

Fallen by -14.9% (YoY

CASH AND EQV(HY)

Highest at HKD 3,276.45 MM

DEBT-EQUITY RATIO (HY)

Lowest at -95.32 %

DIVIDEND PER SHARE(HY)

Highest at HKD 16.44

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,031.8

INTEREST(Q)

Highest at HKD 1.47 MM

OPERATING PROFIT(Q)

Lowest at HKD 15.2 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.14 %

PRE-TAX PROFIT(Q)

Lowest at HKD 26.3 MM

NET PROFIT(Q)

Lowest at HKD 42.81 MM

Here's what is working for Cheerwin Group Ltd.

Cash and Eqv

Highest at HKD 3,276.45 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -95.32 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at HKD 16.44

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (HKD)

Raw Material Cost

Fallen by -14.9% (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

Depreciation

Highest at HKD 26.24 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Depreciation

At HKD 26.24 MM has Grown at 28.63%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for Cheerwin Group Ltd.

Interest Coverage Ratio

Lowest at 1,031.8

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at HKD 1.47 MM

in the last five periods and Increased by 14.22% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Operating Profit

Lowest at HKD 15.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 2.14 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at HKD 26.3 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 42.81 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)