China Resources Microelectronics Ltd. (688396) 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 Resources Microelectronics Ltd.

Why is China Resources Microelectronics Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 10.43% and Operating profit at 1.83% over the last 5 years

The company has declared Negative results for the last 10 consecutive quarters

ROCE(HY) Lowest at 3.51%
DEBTORS TURNOVER RATIO(HY) Lowest at 3.96 times
OPERATING PROFIT(Q) Lowest at CNY 242.4 MM

With ROE of 3.15%, it has a expensive valuation with a 3.20 Price to Book Value

Over the past year, while the stock has generated a return of 8.65%, its profits have fallen by -23.6%
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 8.65% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 Other Electrical Equipment)

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

Is China Resources Microelectronics Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

China Resources Microelectronics Ltd.

77.19%

0.98

42.43%

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)

8.69%

EBIT Growth (5y)

-3.20%

EBIT to Interest (avg)

38.47

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.39

Sales to Capital Employed (avg)

0.45

Tax Ratio

10.43%

Dividend Payout Ratio

15.46%

Pledged Shares

Institutional Holding

ROCE (avg)

15.72%

ROE (avg)

9.13%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

133

Industry P/E

Price to Book Value

3.59

EV to EBIT

81.16

EV to EBITDA

38.82

EV to Capital Employed

5.46

EV to Sales

6.35

PEG Ratio

Dividend Yield

0.13%

ROCE (Latest)

6.72%

ROE (Latest)

2.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

OPERATING CASH FLOW(Y)

Highest at CNY 2,423.45 MM

DEBT-EQUITY RATIO (HY)

Lowest at -41.54 %

INVENTORY TURNOVER RATIO(HY)

Highest at 3.85 times

RAW MATERIAL COST(Y)

Fallen by -16.74% (YoY

EPS(Q)

Highest at CNY 0.25

-7What is not working for the Company

INTEREST(HY)

At CNY 8.64 MM has Grown at 8%

INTEREST COVERAGE RATIO(Q)

Lowest at 7,153.48

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.41 times

OPERATING PROFIT(Q)

Lowest at CNY 227.01 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.95 %

Here's what is working for China Resources Microelectronics Ltd.

Operating Cash Flow

Highest at CNY 2,423.45 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at -41.54 % 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

Inventory Turnover Ratio

Highest at 3.85 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

EPS

Highest at CNY 0.25

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -16.74% (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 Resources Microelectronics Ltd.

Interest Coverage Ratio

Lowest at 7,153.48

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 8.64 MM has Grown at 8%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 227.01 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.95 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 3.41 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio