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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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D&G Technology Holding Co. Ltd.

Lung Kee (Bermuda) Holdings Ltd.

Chongqing Machinery & Electric Co., Ltd.

Haina Intelligent Equipment International Holdings Ltd.

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
High Debt Company with a Debt to Equity ratio (avg) at times

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 194.20%, its profits have risen by 44.6% ; the PEG ratio of the company is 0.1

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.

190.0%

2.71

83.90%

Hang Seng Hong Kong

27.36%

1.03

25.88%

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)

0.63

Tax Ratio

100.00%

Dividend Payout Ratio

30.12%

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

0.22

EV to EBIT

-34.96

EV to EBITDA

45.08

EV to Capital Employed

0.36

EV to Sales

0.40

PEG Ratio

0.07

Dividend Yield

2.12%

ROCE (Latest)

-1.02%

ROE (Latest)

7.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

Not enough Data to analyse Financial Trend

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

Operating Cash Flow

Highest at HKD 1,651.38 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 Sales

Highest at HKD 5,053.39 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (HKD MM)

Debt-Equity Ratio

Lowest at 16.84 % 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

Inventory Turnover Ratio

Highest at 3.54% and Grown

In each half year 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 1.49% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Cash and Eqv

Highest at HKD 3,529.4 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 80.65%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

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

Interest Coverage Ratio

Lowest at 140.37

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

Lowest at HKD -17.39 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (HKD MM)

Pre-Tax Profit

At HKD -17.39 MM has Fallen at -143.2%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (HKD MM)

Operating Profit

Lowest at HKD 47.22 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 0.93 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 24.61% (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