Chongqing Fenghwa Group Co., Ltd. (600615) 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

Chongqing Fenghwa Group Co., Ltd.

Why is Chongqing Fenghwa Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.21%

The company has been able to generate a Return on Capital Employed (avg) of 0.21% signifying low profitability per unit of total capital (equity and debt)

With ROE of 2.84%, it has a expensive valuation with a 4.02 Price to Book Value

Over the past year, while the stock has generated a return of 4.68%, its profits have risen by 82.3% ; the PEG ratio of the company is 2.7
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 4.68% in the last 1 year, much lower than market (China Shanghai Composite) returns of 14.77%

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 Minerals & Mining)

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

Is Chongqing Fenghwa Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Chongqing Fenghwa Group Co., Ltd.

4.68%

1.05

43.21%

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)

48.37%

EBIT Growth (5y)

23.59%

EBIT to Interest (avg)

-11.69

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

0.27

Tax Ratio

11.95%

Dividend Payout Ratio

21.48%

Pledged Shares

Institutional Holding

ROCE (avg)

0.21%

ROE (avg)

0.84%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

141

Industry P/E

Price to Book Value

4.02

EV to EBIT

288.29

EV to EBITDA

85.18

EV to Capital Employed

4.55

EV to Sales

6.40

PEG Ratio

2.72

Dividend Yield

0.05%

ROCE (Latest)

1.58%

ROE (Latest)

2.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

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

35What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 69.75 MM

ROCE(HY)

Highest at 1.94%

RAW MATERIAL COST(Y)

Fallen by -2,209.8% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -5.87 %

INVENTORY TURNOVER RATIO(HY)

Highest at 6.33%

NET SALES(Q)

Highest at CNY 164.85 MM

PRE-TAX PROFIT(Q)

At CNY 7.19 MM has Grown at 100.58%

NET PROFIT(Q)

At CNY 5.02 MM has Grown at 90.25%

EPS(Q)

Highest at CNY 0.02

-4What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Chongqing Fenghwa Group Co., Ltd.

Net Sales

At CNY 164.85 MM has Grown at 253.72%

over average net sales of the previous four periods of CNY 46.61 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 69.75 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 164.85 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 7.19 MM has Grown at 100.58%

over average net sales of the previous four periods of CNY 3.59 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 5.02 MM has Grown at 90.25%

over average net sales of the previous four periods of CNY 2.64 MM

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)

Debt-Equity Ratio

Lowest at -5.87 %

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 6.33%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -2,209.8% (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