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

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 4.10 Price to Book Value

Over the past year, while the stock has generated a return of 8.56%, its profits have risen by 82.3% ; the PEG ratio of the company is 2.8
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 8.56% 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 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.

9.24%

1.20

41.68%

China Shanghai Composite

13.33%

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)

55.22%

EBIT Growth (5y)

13.46%

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)

0.31

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

144

Industry P/E

Price to Book Value

4.10

EV to EBIT

294.16

EV to EBITDA

86.92

EV to Capital Employed

4.64

EV to Sales

6.53

PEG Ratio

2.78

Dividend Yield

0.05%

ROCE (Latest)

1.58%

ROE (Latest)

2.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly 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

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 72.56 MM

DEBT-EQUITY RATIO (HY)

Lowest at -9.25 %

RAW MATERIAL COST(Y)

Fallen by -6.89% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 11.03 times

DEBTORS TURNOVER RATIO(HY)

Highest at 4.01 times

NET SALES(Q)

At CNY 144.03 MM has Grown at 28.28%

-15What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY -13.07 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -9.07 %

PRE-TAX PROFIT(Q)

Lowest at CNY -8.95 MM

NET PROFIT(Q)

Lowest at CNY -4.25 MM

EPS(Q)

Lowest at CNY -0.02

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

Operating Cash Flow

Highest at CNY 72.56 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 -9.25 % 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

Net Sales

At CNY 144.03 MM has Grown at 28.28%

over average net sales of the previous four periods of CNY 112.28 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 11.03 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 4.01 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -6.89% (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 Chongqing Fenghwa Group Co., Ltd.

Pre-Tax Profit

At CNY -8.95 MM has Fallen at -252.31%

over average net sales of the previous four periods of CNY 5.88 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -4.25 MM has Fallen at -203.14%

over average net sales of the previous four periods of CNY 4.13 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -13.07 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -9.07 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -8.95 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -4.25 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)