China Quanjude (Group) Co. Ltd. (002186) 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 Quanjude (Group) Co. Ltd.

Why is China Quanjude (Group) Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 0.77%

The company has been able to generate a Return on Capital Employed (avg) of 0.77% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 9.20% and Operating profit at 14.75% over the last 5 years

Flat results in Mar 26

NET PROFIT(9M) At CNY 2.89 MM has Grown at -68.06%
DEBTORS TURNOVER RATIO(HY) Lowest at 13.61 times
INTEREST COVERAGE RATIO(Q) Lowest at 140.22

With ROE of 1.52%, it has a very expensive valuation with a 3.28 Price to Book Value

Over the past year, while the stock has generated a return of -13.40%, its profits have fallen by -46.8%

Below par performance in long term as well as near term

Along with generating -13.40% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Leisure Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is China Quanjude (Group) Co. Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Quanjude (Group) Co. Ltd.

-100.0%

-0.18

31.91%

China Shanghai Composite

21.43%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.20%

EBIT Growth (5y)

14.75%

EBIT to Interest (avg)

-28.51

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

1.52

Tax Ratio

8.37%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.77%

ROE (avg)

2.16%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

215

Industry P/E

Price to Book Value

3.28

EV to EBIT

-893.54

EV to EBITDA

32.97

EV to Capital Employed

3.45

EV to Sales

2.18

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.39%

ROE (Latest)

1.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

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

9What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 2.63 MM has Grown at 8,676.72%

NET PROFIT(Q)

At CNY 6.77 MM has Grown at 218.81%

RAW MATERIAL COST(Y)

Fallen by -9.58% (YoY

NET SALES(Q)

Highest at CNY 332.87 MM

-12What is not working for the Company

NET PROFIT(9M)

At CNY 2.89 MM has Grown at -68.06%

DEBTORS TURNOVER RATIO(HY)

Lowest at 13.61 times

INTEREST COVERAGE RATIO(Q)

Lowest at 140.22

CASH AND EQV(HY)

Lowest at CNY 218.31 MM

DEBT-EQUITY RATIO (HY)

Highest at 9.93 %

OPERATING PROFIT(Q)

Lowest at CNY 2.68 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.8 %

Here's what is working for China Quanjude (Group) Co. Ltd.

Pre-Tax Profit

At CNY 2.63 MM has Grown at 8,676.72%

over average net sales of the previous four periods of CNY -0.03 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 6.77 MM has Grown at 218.81%

over average net sales of the previous four periods of CNY 2.12 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 332.87 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -9.58% (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 Quanjude (Group) Co. Ltd.

Interest Coverage Ratio

Lowest at 140.22

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 13.61 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

Operating Profit

Lowest at CNY 2.68 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.8 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 218.31 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 9.93 %

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