China Best Group Holding Ltd. (370) 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

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Why is China Best Group Holding Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0%

Poor long term growth as Net Sales has grown by an annual rate of -28.64% and Operating profit at 6.17% over the last 5 years
The company is Net-Debt Free

Negative results in Mar 26

ROCE(HY) Lowest at -33.45%
DEBT-EQUITY RATIO (HY) Highest at 55.75 %
INVENTORY TURNOVER RATIO(HY) Lowest at 6.8 times

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -81.66%, its profits have risen by 13.1%

Below par performance in long term as well as near term

Along with generating -81.66% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in the last 3 years, 1 year and 3 months

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 Electronics & Appliances)

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

Is China Best Group Holding Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

China Best Group Holding Ltd.

-81.66%

2.59

76.45%

Hang Seng Hong Kong

0.26%

0.01

20.12%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-28.64%

EBIT Growth (5y)

6.17%

EBIT to Interest (avg)

-3.66

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.43

Sales to Capital Employed (avg)

0.39

Tax Ratio

0.62%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.17%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.32

EV to EBIT

-12.97

EV to EBITDA

-15.11

EV to Capital Employed

1.22

EV to Sales

11.87

PEG Ratio

Dividend Yield

ROCE (Latest)

-9.38%

ROE (Latest)

-18.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 34.88 MM

RAW MATERIAL COST(Y)

Fallen by -66.5% (YoY

NET SALES(Q)

Highest at HKD 153.57 MM

-18What is not working for the Company

ROCE(HY)

Lowest at -33.45%

DEBT-EQUITY RATIO (HY)

Highest at 55.75 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.8 times

INTEREST(Q)

Highest at HKD 20.2 MM

PRE-TAX PROFIT(Q)

Lowest at HKD -129.16 MM

NET PROFIT(Q)

Lowest at HKD -122.62 MM

EPS(Q)

Lowest at HKD -0.06

Here's what is working for China Best Group Holding Ltd.

Net Sales

At HKD 153.57 MM has Grown at 195.54%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (HKD MM)

Operating Cash Flow

Highest at HKD 34.88 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Net Sales

Highest at HKD 153.57 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Raw Material Cost

Fallen by -66.5% (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 Best Group Holding Ltd.

Pre-Tax Profit

At HKD -129.16 MM has Fallen at -115.67%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (HKD MM)

Net Profit

At HKD -122.62 MM has Fallen at -108.3%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (HKD MM)

Interest

Highest at HKD 20.2 MM

in the last five periods and Increased by 180.48% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Pre-Tax Profit

Lowest at HKD -129.16 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD -122.62 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD -0.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Debt-Equity Ratio

Highest at 55.75 %

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

Inventory Turnover Ratio

Lowest at 6.8 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio