China Communications Services Corp. Ltd. (552) 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 Communications Services Corp. Ltd.

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China Energy Engineering Corp. Ltd.

China Railway Construction Corp. Ltd.

Central New Energy Holding Group Ltd.

China Everbright Environment Group Ltd.

China Railway Group Ltd.

China Communications Construction Co. Ltd.

Canvest Environmental Protection Group Co. Ltd.

Why is China Communications Services Corp. Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 21.52

Poor long term growth as Operating profit has grown by an annual rate 5.50% of over the last 5 years

Flat results in Dec 25

OPERATING CASH FLOW(Y) Lowest at HKD 8,535.33 MM
ROCE(HY) Lowest at 7.69%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.1 times

With ROE of 7.79%, it has a Fair valuation with a 0.60 Price to Book Value

Over the past year, while the stock has generated a return of -0.47%, its profits have fallen by -2.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.47% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to China Communications Services Corp. Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is China Communications Services Corp. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Communications Services Corp. Ltd.

-0.47%

0.09

21.80%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.21%

EBIT Growth (5y)

5.50%

EBIT to Interest (avg)

21.52

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

3.04

Tax Ratio

9.02%

Dividend Payout Ratio

45.70%

Pledged Shares

Institutional Holding

0.18%

ROCE (avg)

12.30%

ROE (avg)

8.41%

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

0.60

EV to EBIT

7.47

EV to EBITDA

4.72

EV to Capital Employed

0.51

EV to Sales

0.13

PEG Ratio

Dividend Yield

5.10%

ROCE (Latest)

6.89%

ROE (Latest)

7.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

DIVIDEND PAYOUT RATIO(Y)

Highest at 110.35%

RAW MATERIAL COST(Y)

Fallen by 0.81% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 112.54 times

DIVIDEND PER SHARE(HY)

Highest at HKD 2.1

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 8,535.33 MM

ROCE(HY)

Lowest at 7.69%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.1 times

NET SALES(Q)

Lowest at HKD 80,085.61 MM

OPERATING PROFIT(Q)

Lowest at HKD 1,722.05 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.15 %

Here's what is working for China Communications Services Corp. Ltd.

Dividend Payout Ratio

Highest at 110.35% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Inventory Turnover Ratio

Highest at 112.54 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at HKD 2.1

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (HKD)

Raw Material Cost

Fallen by 0.81% (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 Communications Services Corp. Ltd.

Operating Cash Flow

Lowest at HKD 8,535.33 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 (HKD MM)

Debtors Turnover Ratio

Lowest at 2.1 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at HKD 80,085.61 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Operating Profit

Lowest at HKD 1,722.05 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 2.15 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales