Chengdu Hongqi Chain Co., Ltd. (002697) 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 Hongqi Chain Co., Ltd.

Why is Chengdu Hongqi Chain Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 1.60% and Operating profit at 3.08% over the last 5 years

Flat results in Sep 25

ROCE(HY) Lowest at 11.39%
INVENTORY TURNOVER RATIO(HY) Lowest at 3.32 times
INTEREST COVERAGE RATIO(Q) Lowest at 1,797.19

With ROE of 11.67%, it has a attractive valuation with a 1.57 Price to Book Value

Over the past year, while the stock has generated a return of -9.70%, its profits have fallen by -6.1%
At the current price, the company has a high dividend yield of 2.2

Below par performance in long term as well as near term

Along with generating -9.70% 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 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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chengdu Hongqi Chain Co., Ltd.

-6.17%

0.05

38.51%

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)

1.60%

EBIT Growth (5y)

3.08%

EBIT to Interest (avg)

19.79

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

2.11

Tax Ratio

17.11%

Dividend Payout Ratio

30.01%

Pledged Shares

Institutional Holding

ROCE (avg)

18.14%

ROE (avg)

12.54%

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

1.57

EV to EBIT

11.07

EV to EBITDA

4.20

EV to Capital Employed

2.00

EV to Sales

0.54

PEG Ratio

Dividend Yield

2.18%

ROCE (Latest)

18.08%

ROE (Latest)

11.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

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

4What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -42.98 %

RAW MATERIAL COST(Y)

Fallen by -31.46% (YoY

CASH AND EQV(HY)

Highest at CNY 5,152.59 MM

-13What is not working for the Company

ROCE(HY)

Lowest at 11.39%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.32 times

INTEREST COVERAGE RATIO(Q)

Lowest at 1,797.19

DEBTORS TURNOVER RATIO(HY)

Lowest at 39.75 times

NET SALES(Q)

Lowest at CNY 2,300.47 MM

OPERATING PROFIT(Q)

Lowest at CNY 140.66 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.11 %

NET PROFIT(Q)

Lowest at CNY 101.87 MM

EPS(Q)

Lowest at CNY 0.07

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

Debt-Equity Ratio

Lowest at -42.98 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Cash and Eqv

Highest at CNY 5,152.59 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -31.46% (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 Hongqi Chain Co., Ltd.

Interest Coverage Ratio

Lowest at 1,797.19

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 3.32 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 2,300.47 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -10.86%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 140.66 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.11 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 101.87 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.07

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 39.75 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio