China Chunlai Education Group Co., Ltd. () 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 Chunlai Education Group Co., Ltd. ?

High Management Efficiency with a high ROCE of 13.33%

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

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

Healthy long term growth as Net Sales has grown by an annual rate of 20.03%

The company has declared Positive results for the last 3 consecutive quarters

INTEREST COVERAGE RATIO(Q) Highest at 1,996.73
DEBT-EQUITY RATIO (HY) Lowest at 18.26 %
NET SALES(Q) Highest at HKD 974.16 MM

With ROE of 19.38%, it has a Fair valuation with a 1.17 Price to Book Value

Over the past year, while the stock has generated a return of -68.00%, its profits have risen by 7.1% ; the PEG ratio of the company is 0.9

Below par performance in long term as well as near term

Along with generating -68.00% 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 hold?

Overall Portfolio exposure to China Chunlai Education Group 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 Chunlai Education Group Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Chunlai Education Group Co., Ltd.

-68.0%

-1.35

52.69%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.03%

EBIT Growth (5y)

27.01%

EBIT to Interest (avg)

5.78

Debt to EBITDA (avg)

2.09

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

0.27

Tax Ratio

1.40%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

13.33%

ROE (avg)

21.03%

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

1.17

EV to EBIT

7.95

EV to EBITDA

5.84

EV to Capital Employed

1.13

EV to Sales

3.55

PEG Ratio

0.85

Dividend Yield

ROCE (Latest)

14.28%

ROE (Latest)

19.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

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

14What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 1,996.73

DEBT-EQUITY RATIO (HY)

Lowest at 18.26 %

NET SALES(Q)

Highest at HKD 974.16 MM

PRE-TAX PROFIT(Q)

Highest at HKD 469.74 MM

NET PROFIT(Q)

Highest at HKD 464.39 MM

CASH AND EQV(HY)

Highest at HKD 1,221.45 MM

OPERATING PROFIT(Q)

Highest at HKD 580.06 MM

EPS(Q)

Highest at HKD 0.38

-3What is not working for the Company

ROCE(HY)

Lowest at 19.4%

RAW MATERIAL COST(Y)

Grown by 6.55% (YoY

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

Interest Coverage Ratio

Highest at 1,996.73 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at HKD 974.16 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (HKD MM)

Pre-Tax Profit

Highest at HKD 469.74 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (HKD MM)

Net Profit

Highest at HKD 464.39 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (HKD MM)

Debt-Equity Ratio

Lowest at 18.26 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Operating Profit

Highest at HKD 580.06 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (HKD MM)

EPS

Highest at HKD 0.38

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Cash and Eqv

Highest at HKD 1,221.45 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at HKD 154.75 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

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

Raw Material Cost

Grown by 6.55% (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