Chongqing Machinery & Electric Co., Ltd. (2722) 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

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Chongqing Machinery & Electric Co., Ltd.

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Beijing SinoHytec Co., Ltd.

Why is Chongqing Machinery & Electric Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0.13%

Poor long term growth as Net Sales has grown by an annual rate of 9.34% over the last 5 years
The company is Net-Debt Free

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 197.14%, its profits have risen by 48.7% ; the PEG ratio of the company is 0.3

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 Industrial Manufacturing)

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

Is Chongqing Machinery & Electric Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Chongqing Machinery & Electric Co., Ltd.

-100.0%

5.26

76.66%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.34%

EBIT Growth (5y)

10.73%

EBIT to Interest (avg)

-0.46

Debt to EBITDA (avg)

8.40

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

0.64

Tax Ratio

100.00%

Dividend Payout Ratio

33.08%

Pledged Shares

Institutional Holding

ROCE (avg)

0.13%

ROE (avg)

4.87%

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

1.23

EV to EBIT

-157.78

EV to EBITDA

45.16

EV to Capital Employed

1.19

EV to Sales

1.33

PEG Ratio

0.34

Dividend Yield

0.48%

ROCE (Latest)

-0.76%

ROE (Latest)

7.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

Mildly Bullish

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 2,285.41 MM

PRE-TAX PROFIT(Q)

At HKD 53.56 MM has Grown at 407.94%

ROCE(HY)

Highest at 9%

CASH AND EQV(HY)

Highest at HKD 3,972.7 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 4.13 times

DEBTORS TURNOVER RATIO(HY)

Highest at 1.57 times

DIVIDEND PER SHARE(HY)

Highest at HKD 1.57

NET SALES(Q)

Highest at HKD 5,864.47 MM

NET PROFIT(Q)

Highest at HKD 476.68 MM

-5What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 23.1% (YoY

INTEREST(Q)

Highest at HKD 48.17 MM

Here's what is working for Chongqing Machinery & Electric Co., Ltd.

Pre-Tax Profit

At HKD 53.56 MM has Grown at 407.94%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (HKD MM)

Operating Cash Flow

Highest at HKD 2,285.41 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 (HKD MM)

Net Profit

At HKD 476.68 MM has Grown at 150.96%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (HKD MM)

Net Sales

Highest at HKD 5,864.47 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Net Profit

Highest at HKD 476.68 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

Cash and Eqv

Highest at HKD 3,972.7 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 4.13 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 1.57 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at HKD 1.57

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (HKD)

Depreciation

At HKD 189.56 MM has Grown at 6.9%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for Chongqing Machinery & Electric Co., Ltd.

Interest

Highest at HKD 48.17 MM

in the last five periods and Increased by 49.9% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Raw Material Cost

Grown by 23.1% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales