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

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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 16.14% and Operating profit at 16.22% 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 16.14% and Operating profit at 16.22% over the last 5 years

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

The company has declared negative results in Dec 23 after 4 consecutive negative quarters
NET SALES(9M) At CNY 14,938.03 MM has Grown at -22.28%
NET PROFIT(HY) At CNY 69.59 MM has Grown at -66.53%
INTEREST COVERAGE RATIO(Q) Lowest at 345.69

With ROE of 12.72%, it has a expensive valuation with a 2.61 Price to Book Value

Over the past year, while the stock has generated a return of 6.33%, its profits have fallen by -10.8%
At the current price, the company has a high dividend yield of 0.3

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, Medium Return

Absolute

Risk Adjusted

Volatility

China Baoan Group Co., Ltd.

3.64%

0.64

33.10%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.14%

EBIT Growth (5y)

16.22%

EBIT to Interest (avg)

3.07

Debt to EBITDA (avg)

3.10

Net Debt to Equity (avg)

1.22

Sales to Capital Employed (avg)

0.93

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

2.61

EV to EBIT

23.71

EV to EBITDA

12.29

EV to Capital Employed

1.76

EV to Sales

1.80

PEG Ratio

Dividend Yield

0.29%

ROCE (Latest)

7.42%

ROE (Latest)

12.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -7.89% (YoY

NET PROFIT(Q)

Highest at CNY 169.09 MM

-26What is not working for the Company

NET SALES(9M)

At CNY 14,938.03 MM has Grown at -22.28%

NET PROFIT(HY)

At CNY 69.59 MM has Grown at -66.53%

INTEREST COVERAGE RATIO(Q)

Lowest at 345.69

OPERATING CASH FLOW(Y)

Lowest at CNY 205.73 MM

ROCE(HY)

Lowest at 2.68%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.3%

OPERATING PROFIT(Q)

Lowest at CNY 470.98 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.76 %

DEBT-EQUITY RATIO (HY)

Highest at 125.39 %

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

Net Profit

Highest at CNY 169.09 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 169.09 MM has Grown at 87.02%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -7.89% (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 Baoan Group Co., Ltd.

Net Sales

At CNY 14,938.03 MM has Grown at -22.28%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 345.69 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 470.98 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 9.76 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 1.3% 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

Operating Cash Flow

Lowest at CNY 205.73 MM

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 125.39 %

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