China Baoan Group Co., Ltd. (000009) 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 Baoan Group Co., Ltd.

Why is China Baoan Group Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 17.04% and Operating profit at 23.38% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 19.00% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 17.04% and Operating profit at 23.38% over the last 5 years

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

OPERATING CASH FLOW(Y) Lowest at CNY 1,354.56 MM
INTEREST(HY) At CNY 299.6 MM has Grown at 17.01%
NET PROFIT(Q) At CNY 22.45 MM has Fallen at -77.73%

With ROE of 12.72%, it has a very expensive valuation with a 3.00 Price to Book Value

Over the past year, while the stock has generated a return of 1.30%, its profits have fallen by -10.8%
At the current price, the company has a high dividend yield of 0.3

Underperformed the market in the last 1 year

The stock has generated a return of 1.30% in the last 1 year, much lower than market (China Shanghai Composite) returns of 13.33%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is China Baoan Group Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Baoan Group Co., Ltd.

3.31%

-0.23

34.34%

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)

17.04%

EBIT Growth (5y)

23.38%

EBIT to Interest (avg)

3.07

Debt to EBITDA (avg)

3.10

Net Debt to Equity (avg)

1.22

Sales to Capital Employed (avg)

0.89

Tax Ratio

25.84%

Dividend Payout Ratio

44.84%

Pledged Shares

Institutional Holding

ROCE (avg)

10.11%

ROE (avg)

19.00%

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

3.00

EV to EBIT

26.15

EV to EBITDA

13.56

EV to Capital Employed

1.94

EV to Sales

1.99

PEG Ratio

Dividend Yield

0.26%

ROCE (Latest)

7.42%

ROE (Latest)

12.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

5What is working for the Company

NET SALES(Q)

At CNY 5,973.15 MM has Grown at 29.68%

PRE-TAX PROFIT(Q)

Highest at CNY 514.38 MM

-24What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 1,354.56 MM

INTEREST(HY)

At CNY 299.6 MM has Grown at 17.01%

NET PROFIT(Q)

At CNY 22.45 MM has Fallen at -77.73%

ROCE(HY)

Lowest at 0.7%

DEBT-EQUITY RATIO (HY)

Highest at 136.5 %

RAW MATERIAL COST(Y)

Grown by 13.52% (YoY

Here's what is working for China Baoan Group Co., Ltd.

Net Sales

At CNY 5,973.15 MM has Grown at 29.68%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 514.38 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 514.38 MM has Grown at 80.87%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Here's what is not working for China Baoan Group Co., Ltd.

Net Profit

At CNY 22.45 MM has Fallen at -77.73%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 299.6 MM has Grown at 17.01%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 1,354.56 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 136.5 % and Grown

In each half year 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 13.52% (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