China Merchants Shekou Industrial Zone Holdings Co., Ltd. (001979) 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 Merchants Shekou Industrial Zone Holdings Co., Ltd.

Why is China Merchants Shekou Industrial Zone Holdings Co., Ltd. ?

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

Poor long term growth as Net Sales has grown by an annual rate of 9.30% and Operating profit at -13.14% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 7.84% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.30% and Operating profit at -13.14% over the last 5 years

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

ROCE(HY) Lowest at 3.99%
DEBT-EQUITY RATIO (HY) Highest at 165.58 %

With ROE of 4.15%, it has a fair valuation with a 0.92 Price to Book Value

Over the past year, while the stock has generated a return of -7.40%, its profits have fallen by -26.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.40% 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 hold?

Overall Portfolio exposure to China Merchants Shekou Industrial Zone Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

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

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

Is China Merchants Shekou Industrial Zone Holdings Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Merchants Shekou Industrial Zone Holdings Co., Ltd.

-6.34%

-0.41

29.83%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.30%

EBIT Growth (5y)

-13.14%

EBIT to Interest (avg)

3.69

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

71.42%

Dividend Payout Ratio

43.52%

Pledged Shares

Institutional Holding

ROCE (avg)

6.92%

ROE (avg)

7.84%

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

0.92

EV to EBIT

30.72

EV to EBITDA

20.61

EV to Capital Employed

0.97

EV to Sales

1.41

PEG Ratio

Dividend Yield

1.80%

ROCE (Latest)

3.15%

ROE (Latest)

4.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

9What is working for the Company

NET SALES(Q)

At CNY 38,281.37 MM has Grown at 43.18%

PRE-TAX PROFIT(Q)

At CNY 3,242.28 MM has Grown at 104.61%

RAW MATERIAL COST(Y)

Fallen by -196.79% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 0.4 times

DEBTORS TURNOVER RATIO(HY)

Highest at 1.61 times

-3What is not working for the Company

ROCE(HY)

Lowest at 3.99%

DEBT-EQUITY RATIO (HY)

Highest at 165.58 %

Here's what is working for China Merchants Shekou Industrial Zone Holdings Co., Ltd.

Net Sales

At CNY 38,281.37 MM has Grown at 43.18%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 3,242.28 MM has Grown at 104.61%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Highest at 0.4 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 1.61 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 -196.79% (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 Merchants Shekou Industrial Zone Holdings Co., Ltd.

Debt-Equity Ratio

Highest at 165.58 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio