Why is China Meheco Group Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of -2.14% and Operating profit at -13.76% over the last 5 years
2
The company has declared Negative results for the last 4 consecutive quarters
- NET PROFIT(HY) At CNY 254.06 MM has Grown at -57.61%
- OPERATING CASH FLOW(Y) Lowest at CNY 730.52 MM
- ROCE(HY) Lowest at 4.7%
3
With ROE of 5.18%, it has a very expensive valuation with a 1.53 Price to Book Value
- Over the past year, while the stock has generated a return of -8.40%, its profits have fallen by -40.1%
- At the current price, the company has a high dividend yield of 0.9
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -8.40% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
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 Pharmaceuticals & Biotechnology)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is China Meheco Group Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
China Meheco Group Co., Ltd.
-8.4%
0.07
23.91%
China Shanghai Composite
14.77%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
-2.14%
EBIT Growth (5y)
-13.76%
EBIT to Interest (avg)
6.05
Debt to EBITDA (avg)
2.32
Net Debt to Equity (avg)
0.39
Sales to Capital Employed (avg)
1.98
Tax Ratio
28.46%
Dividend Payout Ratio
30.00%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
9.04%
ROE (avg)
8.92%
Valuation Key Factors 
Factor
Value
P/E Ratio
30
Industry P/E
Price to Book Value
1.53
EV to EBIT
24.68
EV to EBITDA
15.69
EV to Capital Employed
1.38
EV to Sales
0.69
PEG Ratio
NA
Dividend Yield
0.89%
ROCE (Latest)
5.58%
ROE (Latest)
5.18%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
Bullish
No Signal
Bollinger Bands
Sideways
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
1What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -13.97% (YoY
-15What is not working for the Company
NET PROFIT(HY)
At CNY 254.06 MM has Grown at -57.61%
OPERATING CASH FLOW(Y)
Lowest at CNY 730.52 MM
ROCE(HY)
Lowest at 4.7%
DEBTORS TURNOVER RATIO(HY)
Lowest at 1.94%
DEBT-EQUITY RATIO
(HY)
Highest at 40.75 %
Here's what is working for China Meheco Group Co., Ltd.
Raw Material Cost
Fallen by -13.97% (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 Meheco Group Co., Ltd.
Net Profit
At CNY 254.06 MM has Grown at -57.61%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Debtors Turnover Ratio
Lowest at 1.94% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Operating Cash Flow
Lowest at CNY 730.52 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Debt-Equity Ratio
Highest at 40.75 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






