Chongqing Taiji Industry (Group) Co., Ltd. (600129) 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 Taiji Industry (Group) Co., Ltd.

Why is Chongqing Taiji Industry (Group) Co., Ltd. ?

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

Poor long term growth as Net Sales has grown by an annual rate of -2.33% and Operating profit at -240.08% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 8.70% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -2.33% and Operating profit at -240.08% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(HY) At CNY 90.08 MM has Grown at -70.26%
OPERATING CASH FLOW(Y) Lowest at CNY 231.17 MM
NET SALES(HY) At CNY 5,259.72 MM has Grown at -15.52%

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 -23.99%, its profits have fallen by -136%

Below par performance in long term as well as near term

Along with generating -23.99% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Pharmaceuticals & Biotechnology)

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

Is Chongqing Taiji Industry (Group) Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chongqing Taiji Industry (Group) Co., Ltd.

-38.92%

-2.10

26.20%

China Shanghai Composite

23.91%

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)

-2.91%

EBIT Growth (5y)

29.38%

EBIT to Interest (avg)

2.30

Debt to EBITDA (avg)

9.28

Net Debt to Equity (avg)

1.36

Sales to Capital Employed (avg)

1.38

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.73%

ROE (avg)

8.70%

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

2.09

EV to EBIT

59.29

EV to EBITDA

22.29

EV to Capital Employed

1.42

EV to Sales

1.28

PEG Ratio

0.24

Dividend Yield

ROCE (Latest)

2.40%

ROE (Latest)

3.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

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

11What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -36.48% (YoY

NET PROFIT(Q)

At CNY 65.62 MM has Grown at 74.29%

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 315.28

DEBT-EQUITY RATIO (HY)

Highest at 159.35 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.84 times

OPERATING PROFIT(Q)

Lowest at CNY 84.31 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.33 %

Here's what is working for Chongqing Taiji Industry (Group) Co., Ltd.

Net Profit

At CNY 65.62 MM has Grown at 74.29%

over average net sales of the previous four periods of CNY 37.65 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -36.48% (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 Taiji Industry (Group) Co., Ltd.

Interest Coverage Ratio

Lowest at 315.28 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 159.35 % and Grown

In each half year 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

Debtors Turnover Ratio

Lowest at 2.84 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at CNY 84.31 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.33 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales