China Union Holdings Ltd. (000036) 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 Union Holdings Ltd.

Why is China Union Holdings Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 8.35%

Poor long term growth as Net Sales has grown by an annual rate of -28.40% and Operating profit at -45.54%
The company has been able to generate a Return on Equity (avg) of 8.35% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -28.40% and Operating profit at -45.54%

The company has declared Negative results for the last 8 consecutive quarters

NET PROFIT(9M) At CNY 23.67 MM has Grown at -29.48%
DEBT-EQUITY RATIO (HY) Highest at -27.24 %
INTEREST COVERAGE RATIO(Q) Lowest at 208.94

With ROE of 1.00%, it has a expensive valuation with a 1.23 Price to Book Value

Over the past year, while the stock has generated a return of 13.32%, its profits have fallen by -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 Realty)

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

Is China Union Holdings Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

China Union Holdings Ltd.

19.85%

0.78

56.32%

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)

-28.40%

EBIT Growth (5y)

-45.54%

EBIT to Interest (avg)

11.72

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

37.27%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

68.00%

ROE (avg)

8.35%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

123

Industry P/E

Price to Book Value

1.23

EV to EBIT

72.53

EV to EBITDA

36.24

EV to Capital Employed

1.39

EV to Sales

10.41

PEG Ratio

Dividend Yield

ROCE (Latest)

1.92%

ROE (Latest)

1.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -24.54% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 31.66 MM

NET PROFIT(Q)

Highest at CNY 17.65 MM

EPS(Q)

Highest at CNY 0.02

-12What is not working for the Company

NET PROFIT(9M)

At CNY 23.67 MM has Grown at -29.48%

DEBT-EQUITY RATIO (HY)

Highest at -27.24 %

INTEREST COVERAGE RATIO(Q)

Lowest at 208.94

CASH AND EQV(HY)

Lowest at CNY 3,996.76 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.07 times

INTEREST(Q)

Highest at CNY 10.45 MM

Here's what is working for China Union Holdings Ltd.

Net Profit

At CNY 17.65 MM has Grown at 335.85%

over average net sales of the previous four periods of CNY 4.05 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 31.66 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 31.66 MM has Grown at 77.44%

over average net sales of the previous four periods of CNY 17.84 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 17.65 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -24.54% (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 Union Holdings Ltd.

Interest

At CNY 10.45 MM has Grown at 97.73%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 208.94

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at -27.24 % and Grown

In each half year 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

Interest

Highest at CNY 10.45 MM

in the last five periods and Increased by 97.73% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 3,996.76 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 0.07 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio