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. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 13.55% and Operating profit at 13.00% over the last 5 years
The company is Net-Debt Free
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 13.55% and Operating profit at 13.00% over the last 5 years

The company has declared negative results for the last 10 consecutive quarters

The company has declared negative results in Dec 23 after 4 consecutive negative quarters
NET PROFIT(Q) At CNY 45.06 MM has Fallen at -73.35%
ROCE(HY) Lowest at 0.52%
DEBT-EQUITY RATIO (HY) Highest at 152.65 %

With ROE of 10.91%, it has a expensive valuation with a 1.77 Price to Book Value

Over the past year, while the stock has generated a return of -13.13%, its profits have fallen by -11.3%
At the current price, the company has a high dividend yield of 0.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -13.13% 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 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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Baoan Group Co., Ltd.

-19.79%

-0.75

34.68%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.55%

EBIT Growth (5y)

13.00%

EBIT to Interest (avg)

3.07

Debt to EBITDA (avg)

3.10

Net Debt to Equity (avg)

1.22

Sales to Capital Employed (avg)

0.78

Tax Ratio

25.84%

Dividend Payout Ratio

38.12%

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

1.77

EV to EBIT

17.14

EV to EBITDA

10.31

EV to Capital Employed

1.31

EV to Sales

1.36

PEG Ratio

Dividend Yield

0.44%

ROCE (Latest)

7.63%

ROE (Latest)

10.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

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

2What is working for the Company

NET SALES(9M)

At CNY 18,019.78 MM has Grown at 19.63%

-28What is not working for the Company

NET PROFIT(Q)

At CNY 45.06 MM has Fallen at -73.35%

ROCE(HY)

Lowest at 0.52%

DEBT-EQUITY RATIO (HY)

Highest at 152.65 %

INTEREST COVERAGE RATIO(Q)

Lowest at 375.9

RAW MATERIAL COST(Y)

Grown by 5.59% (YoY

INTEREST(Q)

Highest at CNY 160.1 MM

OPERATING PROFIT(Q)

Lowest at CNY 601.8 MM

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

Net Sales

At CNY 18,019.78 MM has Grown at 19.63%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

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

Net Profit

At CNY 45.06 MM has Fallen at -73.35%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 160.1 MM has Grown at 14.37%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 375.9

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 152.65 % 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

Interest

Highest at CNY 160.1 MM

in the last five periods and Increased by 14.37% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 601.8 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Raw Material Cost

Grown by 5.59% (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