Chengdu Fusen Noble-House Industrial Co., Ltd. (002818) 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

Chengdu Fusen Noble-House Industrial Co., Ltd.

Why is Chengdu Fusen Noble-House Industrial Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -1.24% and Operating profit at -2.29% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

ROCE(HY) Lowest at 11.12%
INVENTORY TURNOVER RATIO(HY) Lowest at 0.9 times
INTEREST COVERAGE RATIO(Q) Lowest at 104,261.8

With ROE of 11.75%, it has a very attractive valuation with a 1.62 Price to Book Value

Over the past year, while the stock has generated a return of -18.75%, its profits have fallen by -16.2%
At the current price, the company has a high dividend yield of 8.9

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 13.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -18.75% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Chengdu Fusen Noble-House Industrial Co., Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is Chengdu Fusen Noble-House Industrial Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chengdu Fusen Noble-House Industrial Co., Ltd.

-15.65%

-0.75

22.06%

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)

-1.24%

EBIT Growth (5y)

-2.29%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

0.24

Tax Ratio

16.69%

Dividend Payout Ratio

117.11%

Pledged Shares

Institutional Holding

ROCE (avg)

19.61%

ROE (avg)

13.44%

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

1.61

EV to EBIT

10.58

EV to EBITDA

7.98

EV to Capital Employed

1.80

EV to Sales

6.19

PEG Ratio

Dividend Yield

8.90%

ROCE (Latest)

17.05%

ROE (Latest)

11.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly 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

2What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 980.9 MM

-19What is not working for the Company

ROCE(HY)

Lowest at 11.12%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.9 times

INTEREST COVERAGE RATIO(Q)

Lowest at 104,261.8

RAW MATERIAL COST(Y)

Grown by 8.48% (YoY

NET SALES(Q)

Lowest at CNY 275.39 MM

OPERATING PROFIT(Q)

Lowest at CNY 131.48 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 47.74 %

PRE-TAX PROFIT(Q)

Lowest at CNY 139.57 MM

NET PROFIT(Q)

Lowest at CNY 117.73 MM

Here's what is working for Chengdu Fusen Noble-House Industrial Co., Ltd.

Operating Cash Flow

Highest at CNY 980.9 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Here's what is not working for Chengdu Fusen Noble-House Industrial Co., Ltd.

Net Sales

At CNY 275.39 MM has Fallen at -18.11%

over average net sales of the previous four periods of CNY 336.28 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 104,261.8

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 0.9 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at CNY 275.39 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 131.48 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 47.74 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 139.57 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 117.73 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 8.48% (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

Non Operating Income

Highest at CNY 0.04 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income