China Automotive Engineering Research Institute Co., Ltd. (601965) 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

China Automotive Engineering Research Institute Co., Ltd.

Why is China Automotive Engineering Research Institute Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 7.88% and Operating profit at 18.52% over the last 5 years

Negative results in Dec 25

INTEREST(HY) At CNY 12.46 MM has Grown at 90.14%
OPERATING CASH FLOW(Y) Lowest at CNY 51.38 MM
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%

Underperformed the market in the last 1 year

The stock has generated a return of 2.95% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to China Automotive Engineering Research Institute Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is China Automotive Engineering Research Institute Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Automotive Engineering Research Institute Co., Ltd.

-29.25%

0.05

30.03%

China Shanghai Composite

23.91%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.40%

EBIT Growth (5y)

14.58%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

0.57

Tax Ratio

16.36%

Dividend Payout Ratio

31.97%

Pledged Shares

Institutional Holding

ROCE (avg)

17.78%

ROE (avg)

12.87%

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

1.80

EV to EBIT

11.23

EV to EBITDA

8.60

EV to Capital Employed

1.91

EV to Sales

2.74

PEG Ratio

0.80

Dividend Yield

2.38%

ROCE (Latest)

17.00%

ROE (Latest)

13.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

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

OPERATING CASH FLOW(Y)

Highest at CNY 1,367.29 MM

RAW MATERIAL COST(Y)

Fallen by -5.51% (YoY

CASH AND EQV(HY)

Highest at CNY 5,465.99 MM

-18What is not working for the Company

INTEREST(Q)

At CNY 11.59 MM has Grown at 78.86%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,591.14

NET SALES(Q)

Lowest at CNY 809.54 MM

OPERATING PROFIT(Q)

Lowest at CNY 184.43 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 22.78 %

PRE-TAX PROFIT(Q)

Lowest at CNY 202.25 MM

NET PROFIT(Q)

Lowest at CNY 163.15 MM

EPS(Q)

Lowest at CNY 0.16

Here's what is working for China Automotive Engineering Research Institute Co., Ltd.

Operating Cash Flow

Highest at CNY 1,367.29 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 5,465.99 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -5.51% (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 China Automotive Engineering Research Institute Co., Ltd.

Interest

At CNY 11.59 MM has Grown at 78.86%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,591.14

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 809.54 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 184.43 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 22.78 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 202.25 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 163.15 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.16

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)