Chen Ke Ming Food Manufacturing Co., Ltd. (002661) 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

Chen Ke Ming Food Manufacturing Co., Ltd.

Why is Chen Ke Ming Food Manufacturing 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 3.08% and Operating profit at -15.63% 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 4.51% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.08% and Operating profit at -15.63% over the last 5 years

Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 171.26 MM
INTEREST COVERAGE RATIO(Q) Lowest at 124.39
PRE-TAX PROFIT(Q) At CNY 16.92 MM has Fallen at -51.89%

With ROE of 4.62%, it has a very attractive valuation with a 1.43 Price to Book Value

Over the past year, while the stock has generated a return of -16.48%, its profits have risen by 277.5% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 5

Below par performance in long term as well as near term

Along with generating -16.48% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Chen Ke Ming Food Manufacturing Co., Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Chen Ke Ming Food Manufacturing Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chen Ke Ming Food Manufacturing Co., Ltd.

-13.8%

0.26

24.81%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.08%

EBIT Growth (5y)

-15.63%

EBIT to Interest (avg)

3.45

Debt to EBITDA (avg)

3.83

Net Debt to Equity (avg)

0.88

Sales to Capital Employed (avg)

0.98

Tax Ratio

18.57%

Dividend Payout Ratio

111.76%

Pledged Shares

Institutional Holding

ROCE (avg)

4.03%

ROE (avg)

4.51%

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

1.43

EV to EBIT

27.44

EV to EBITDA

10.64

EV to Capital Employed

1.22

EV to Sales

1.29

PEG Ratio

0.11

Dividend Yield

5.00%

ROCE (Latest)

4.44%

ROE (Latest)

4.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

5What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 57.19 times

DIVIDEND PAYOUT RATIO(Y)

Highest at 194.81%

RAW MATERIAL COST(Y)

Fallen by -11% (YoY

DIVIDEND PER SHARE(HY)

Highest at CNY 57.19

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 171.26 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 124.39

PRE-TAX PROFIT(Q)

At CNY 16.92 MM has Fallen at -51.89%

DEBT-EQUITY RATIO (HY)

Highest at 99.81 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.45 times

OPERATING PROFIT(Q)

Lowest at CNY 28.5 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.7 %

NET PROFIT(Q)

At CNY 23.39 MM has Fallen at -35%

Here's what is working for Chen Ke Ming Food Manufacturing Co., Ltd.

Debtors Turnover Ratio

Highest at 57.19 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at CNY 57.19

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 194.81%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -11% (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 Chen Ke Ming Food Manufacturing Co., Ltd.

Interest Coverage Ratio

Lowest at 124.39

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 16.92 MM has Fallen at -51.89%

over average net sales of the previous four periods of CNY 35.16 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 171.26 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 28.5 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.7 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY 23.39 MM has Fallen at -35%

over average net sales of the previous four periods of CNY 35.99 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 99.81 %

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

Inventory Turnover Ratio

Lowest at 4.45 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at CNY 0.67 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income