Why is Chengdu Dahongli Machinery Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 3.51%
- The company has been able to generate a Return on Capital Employed (avg) of 3.51% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of -8.19% and Operating profit at -194.98% over the last 5 years
3
With a fall in Net Sales of -17.04%, the company declared Very Negative results in Mar 25
- NET SALES(HY) At CNY 139.82 MM has Grown at -58.9%
4
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 1.94%, its profits have risen by 83.8%
5
Underperformed the market in the last 1 year
- The stock has generated a return of 1.94% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.18%
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 Automobiles)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Chengdu Dahongli Machinery Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Chengdu Dahongli Machinery Co., Ltd.
-7.37%
1.81
61.17%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
-8.19%
EBIT Growth (5y)
-194.98%
EBIT to Interest (avg)
7.35
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.36
Sales to Capital Employed (avg)
0.48
Tax Ratio
62.66%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.51%
ROE (avg)
1.97%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.98
EV to EBIT
-49.28
EV to EBITDA
44.60
EV to Capital Employed
0.96
EV to Sales
1.38
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-1.95%
ROE (Latest)
-0.64%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Movement
9What is working for the Company
PRE-TAX PROFIT(Q)
At CNY 0.49 MM has Grown at 125.59%
NET PROFIT(Q)
At CNY 0.48 MM has Grown at 131.52%
RAW MATERIAL COST(Y)
Fallen by -30.28% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at -35.96 %
-8What is not working for the Company
NET SALES(HY)
At CNY 139.82 MM has Grown at -58.9%
Here's what is working for Chengdu Dahongli Machinery Co., Ltd.
Pre-Tax Profit
At CNY 0.49 MM has Grown at 125.59%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 0.48 MM has Grown at 131.52%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Debt-Equity Ratio
Lowest at -35.96 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -30.28% (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 Chengdu Dahongli Machinery Co., Ltd.
Net Sales
At CNY 139.82 MM has Grown at -58.9%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (CNY MM)
Non Operating Income
Highest at CNY 1.17 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






