Chongqing Fuling Zhacai Group Co., Ltd. (002507) 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 Fuling Zhacai Group Co., Ltd.

Why is Chongqing Fuling Zhacai Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -0.21% and Operating profit at -3.88% over the last 5 years

Flat results in Mar 26

ROCE(HY) Lowest at 8.54%
DEBT-EQUITY RATIO (HY) Highest at -67.73 %

With ROE of 8.48%, it has a fair valuation with a 1.45 Price to Book Value

Over the past year, while the stock has generated a return of -10.31%, its profits have fallen by -2.3%
At the current price, the company has a high dividend yield of 3.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -10.31% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Chongqing Fuling Zhacai Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Chongqing Fuling Zhacai Group Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chongqing Fuling Zhacai Group Co., Ltd.

-9.53%

-1.12

14.83%

China Shanghai Composite

21.43%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.21%

EBIT Growth (5y)

-3.88%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.74

Sales to Capital Employed (avg)

0.28

Tax Ratio

15.04%

Dividend Payout Ratio

63.10%

Pledged Shares

Institutional Holding

ROCE (avg)

29.82%

ROE (avg)

12.56%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.45

EV to EBIT

9.41

EV to EBITDA

8.46

EV to Capital Employed

2.39

EV to Sales

2.82

PEG Ratio

Dividend Yield

3.66%

ROCE (Latest)

25.42%

ROE (Latest)

8.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

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

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.99% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 27.11 times

NET SALES(Q)

Highest at CNY 753.65 MM

PRE-TAX PROFIT(Q)

Highest at CNY 316.81 MM

NET PROFIT(Q)

Highest at CNY 270.26 MM

EPS(Q)

Highest at CNY 0.24

-3What is not working for the Company

ROCE(HY)

Lowest at 8.54%

DEBT-EQUITY RATIO (HY)

Highest at -67.73 %

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

Net Sales

Highest at CNY 753.65 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 753.65 MM has Grown at 23.96%

over average net sales of the previous four periods of CNY 607.98 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 316.81 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 270.26 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.24

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 27.11 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 0.99% (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 Fuling Zhacai Group Co., Ltd.

Debt-Equity Ratio

Highest at -67.73 %

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