China First Heavy Industries (601106) 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 First Heavy Industries

Why is China First Heavy Industries ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 1.10%

Poor long term growth as Net Sales has grown by an annual rate of -11.67% and Operating profit at -240.43% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

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

INVENTORY TURNOVER RATIO(HY) Lowest at 1.14 times
DEBTORS TURNOVER RATIO(HY) Lowest at 0.78 times
NET SALES(Q) Lowest at CNY 1,848.91 MM

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 74.07%, its profits have fallen by -24%

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 First Heavy Industries for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

China First Heavy Industries

27.51%

1.79

50.30%

China Shanghai Composite

23.91%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-13.27%

EBIT Growth (5y)

-41.20%

EBIT to Interest (avg)

-1.57

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

3.53

Sales to Capital Employed (avg)

0.48

Tax Ratio

2.66%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.10%

ROE (avg)

0.66%

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

4.70

EV to EBIT

986.87

EV to EBITDA

63.03

EV to Capital Employed

1.86

EV to Sales

4.15

PEG Ratio

Dividend Yield

ROCE (Latest)

0.19%

ROE (Latest)

-1.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (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

14What is working for the Company

ROCE(HY)

Highest at -4.32%

RAW MATERIAL COST(Y)

Fallen by -354.55% (YoY

CASH AND EQV(HY)

Highest at CNY 9,437.15 MM

NET PROFIT(Q)

At CNY 1.94 MM has Grown at 102.5%

-10What is not working for the Company

NET SALES(9M)

At CNY 7,549.69 MM has Grown at -25.7%

PRE-TAX PROFIT(Q)

At CNY 15.14 MM has Fallen at -59.46%

OPERATING CASH FLOW(Y)

Lowest at CNY 522.35 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.11 times

Here's what is working for China First Heavy Industries

Net Profit

At CNY 1.94 MM has Grown at 102.5%

over average net sales of the previous four periods of CNY -77.8 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 9,437.15 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -354.55% (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 First Heavy Industries

Net Sales

At CNY 7,549.69 MM has Grown at -25.7%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 15.14 MM has Fallen at -59.46%

over average net sales of the previous four periods of CNY 37.34 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 522.35 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Lowest at 1.11 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio