China Reform Culture Holdings Co., Ltd. (600636) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

China Reform Culture Holdings Co., Ltd.

Why is China Reform Culture Holdings Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.85%

The company has been able to generate a Return on Capital Employed (avg) of 1.85% 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 -18.15% and Operating profit at -235.67% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

NET PROFIT(HY) At CNY -442.56 MM has Grown at -15,553.27%
OPERATING CASH FLOW(Y) Lowest at CNY 68.2 MM
INTEREST(9M) At CNY 0.47 MM has Grown at 22.33%

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 -26.05%, its profits have fallen by -1250.7%
At the current price, the company has a high dividend yield of 0.5

Below par performance in long term as well as near term

Along with generating -26.05% 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 Chemicals & Petrochemicals)

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

Is China Reform Culture Holdings Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Reform Culture Holdings Co., Ltd.

-26.05%

0.12

42.75%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-18.15%

EBIT Growth (5y)

-235.67%

EBIT to Interest (avg)

-77.12

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.65

Sales to Capital Employed (avg)

0.15

Tax Ratio

0.24%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.85%

ROE (avg)

3.04%

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

1.79

EV to EBIT

-5.00

EV to EBITDA

-5.11

EV to Capital Employed

3.25

EV to Sales

7.10

PEG Ratio

Dividend Yield

0.48%

ROCE (Latest)

-65.11%

ROE (Latest)

-20.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Bullish

No Trend

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

8What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -65.26 %

NET SALES(Q)

At CNY 36.23 MM has Grown at 76.3%

RAW MATERIAL COST(Y)

Fallen by -31.57% (YoY

CASH AND EQV(HY)

Highest at CNY 2,729.12 MM

PRE-TAX PROFIT(Q)

At CNY -8.44 MM has Grown at 64.18%

NET PROFIT(Q)

At CNY -8.26 MM has Grown at 64.09%

-20What is not working for the Company

NET PROFIT(HY)

At CNY -442.56 MM has Grown at -15,553.27%

OPERATING CASH FLOW(Y)

Lowest at CNY 68.2 MM

INTEREST(9M)

At CNY 0.47 MM has Grown at 22.33%

NET SALES(9M)

At CNY 247.65 MM has Grown at -12.62%

ROCE(HY)

Lowest at -17.56%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.95%

Here's what is working for China Reform Culture Holdings Co., Ltd.

Net Sales

At CNY 36.23 MM has Grown at 76.3%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at -65.26 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Pre-Tax Profit

At CNY -8.44 MM has Grown at 64.18%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -8.26 MM has Grown at 64.09%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 2,729.12 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -31.57% (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 Reform Culture Holdings Co., Ltd.

Interest

At CNY 0.47 MM has Grown at 22.33%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 68.2 MM and Fallen

In each year 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 0.95% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio