Chengdu Expressway Co., Ltd. (1785) 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

Chengdu Expressway Co., Ltd.

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New Concepts Holdings Ltd.

Why is Chengdu Expressway Co., Ltd. ?

High Management Efficiency with a high ROCE of 16.33%

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 16.33%

Poor long term growth as Net Sales has grown by an annual rate of -0.12% and Operating profit at -3.71% over the last 5 years

The company declared positive results in Dec'20 after negative results in Jun'20

INVENTORY TURNOVER RATIO(HY) Highest at 47.47%
NET SALES(Q) Highest at HKD 1,942.74 MM
OPERATING PROFIT(Q) Highest at HKD 664.95 MM

With ROE of 12.38%, it has a Fair valuation with a 0.18 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -8.37%, its profits have fallen by -9.7%

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Underperformed the market in the last 1 year

Even though the market (Hang Seng Hong Kong) has generated returns of 26.67% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -8.37% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Chengdu Expressway Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Chengdu Expressway Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chengdu Expressway Co., Ltd.

-11.86%

0.10

25.53%

Hang Seng Hong Kong

27.36%

1.03

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.12%

EBIT Growth (5y)

-3.71%

EBIT to Interest (avg)

7.15

Debt to EBITDA (avg)

0.86

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

228.34

Tax Ratio

28.22%

Dividend Payout Ratio

31.98%

Pledged Shares

Institutional Holding

ROCE (avg)

16.33%

ROE (avg)

14.26%

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

0.18

EV to EBIT

1.77

EV to EBITDA

1.77

EV to Capital Employed

0.28

EV to Sales

0.51

PEG Ratio

Dividend Yield

17.92%

ROCE (Latest)

15.64%

ROE (Latest)

12.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Bearish

No Trend

OBV

Bullish

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

Not enough Data to analyse Financial Trend

Here's what is working for Chengdu Expressway Co., Ltd.

Net Sales

At HKD 1,942.74 MM has Grown at 141.14%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (HKD MM)

Net Sales

Highest at HKD 1,942.74 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Operating Profit

Highest at HKD 664.95 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (HKD MM)

Pre-Tax Profit

Highest at HKD 416.15 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Net Profit

Highest at HKD 327.39 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

EPS

Highest at HKD 0.19

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Inventory Turnover Ratio

Highest at 47.47%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

At HKD 194.83 MM has Grown at 11.18%

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 Chengdu Expressway Co., Ltd.

Operating Profit Margin

Lowest at 34.23 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 47.32 %

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

Raw Material Cost

Grown by 44.06% (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