ScoreWhy is Chengdu Hongqi Chain Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 1.22% and Operating profit at 2.26% over the last 5 years
2
Flat results in Mar 26
- ROCE(HY) Lowest at 9.77%
- INVENTORY TURNOVER RATIO(HY) Lowest at 3.03 times
- INTEREST COVERAGE RATIO(Q) Lowest at 2,405.83
3
With ROE of 9.46%, it has a attractive valuation with a 1.02 Price to Book Value
- Over the past year, while the stock has generated a return of -19.04%, its profits have fallen by -9.3%
- At the current price, the company has a high dividend yield of 2.9
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -19.04% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Chengdu Hongqi Chain 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 Hongqi Chain Co., Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Chengdu Hongqi Chain Co., Ltd.
-16.75%
-0.39
32.80%
China Shanghai Composite
3.23%
1.20
14.07%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
1.22%
EBIT Growth (5y)
2.26%
EBIT to Interest (avg)
10.41
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.40
Sales to Capital Employed (avg)
2.01
Tax Ratio
37.57%
Dividend Payout Ratio
30.28%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
18.08%
ROE (avg)
12.54%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
1.14
EV to EBIT
6.45
EV to EBITDA
3.15
EV to Capital Employed
1.28
EV to Sales
0.34
PEG Ratio
NA
Dividend Yield
2.58%
ROCE (Latest)
19.80%
ROE (Latest)
9.46%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 4,862.76
CASH AND EQV(HY)
Highest at CNY 5,519.15 MM
PRE-TAX PROFIT(Q)
At CNY 173.86 MM has Grown at 60.78%
-6What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 1,103.54 MM
ROCE(HY)
Lowest at 9.85%
RAW MATERIAL COST(Y)
Grown by 5.98% (YoY
NET SALES(Q)
Lowest at CNY 2,221.96 MM
Here's what is working for Chengdu Hongqi Chain Co., Ltd.
Interest Coverage Ratio
Highest at 4,862.76
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Pre-Tax Profit
At CNY 173.86 MM has Grown at 60.78%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Cash and Eqv
Highest at CNY 5,519.15 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Chengdu Hongqi Chain Co., Ltd.
Operating Cash Flow
Lowest at CNY 1,103.54 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Net Sales
Lowest at CNY 2,221.96 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Raw Material Cost
Grown by 5.98% (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
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