China Meheco Group Co., Ltd. (600056) 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 Meheco Group Co., Ltd.

Why is China Meheco Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -2.99% and Operating profit at -14.89% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(HY) At CNY 76.15 MM has Grown at 13.52%
ROCE(HY) Lowest at 4.62%
DEBT-EQUITY RATIO (HY) Highest at 45.42 %

With ROE of 5.18%, it has a very expensive valuation with a 1.42 Price to Book Value

Over the past year, while the stock has generated a return of -0.28%, its profits have fallen by -40.1%
At the current price, the company has a high dividend yield of 1.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.28% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 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.

-9.96%

-0.08

22.21%

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)

-2.67%

EBIT Growth (5y)

-9.93%

EBIT to Interest (avg)

6.05

Debt to EBITDA (avg)

2.32

Net Debt to Equity (avg)

0.39

Sales to Capital Employed (avg)

1.83

Tax Ratio

28.46%

Dividend Payout Ratio

30.00%

Pledged Shares

Institutional Holding

ROCE (avg)

9.04%

ROE (avg)

8.92%

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

16.61

EV to EBITDA

12.14

EV to Capital Employed

1.12

EV to Sales

0.54

PEG Ratio

4.70

Dividend Yield

1.12%

ROCE (Latest)

6.74%

ROE (Latest)

5.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,496.94 MM

RAW MATERIAL COST(Y)

Fallen by -0.52% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 5.33 times

DEBTORS TURNOVER RATIO(HY)

Highest at 2.02 times

NET PROFIT(Q)

Highest at CNY 182.2 MM

EPS(Q)

Highest at CNY 0.12

-4What is not working for the Company

ROCE(HY)

Lowest at 4.07%

NET SALES(Q)

Lowest at CNY 8,188.78 MM

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

Operating Cash Flow

Highest at CNY 1,496.94 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

Highest at CNY 182.2 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.12

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 5.33 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 2.02 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.52% (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 Sales

Lowest at CNY 8,188.78 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 8,188.78 MM has Fallen at -8.06%

over average net sales of the previous four periods of CNY 8,906.51 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)