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

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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 -1.94% and Operating profit at -37.12% 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 -1.94% and Operating profit at -37.12% over the last 5 years

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

NET PROFIT(HY) At CNY -425.99 MM has Grown at -231.49%
OPERATING CASH FLOW(Y) Lowest at CNY -622.86 MM
ROCE(HY) Lowest at -3.92%

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 -27.75%, its profits have fallen by -136%

Below par performance in long term as well as near term

Along with generating -27.75% 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.

-27.51%

-1.57

31.38%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.94%

EBIT Growth (5y)

-37.12%

EBIT to Interest (avg)

2.30

Debt to EBITDA (avg)

9.28

Net Debt to Equity (avg)

1.36

Sales to Capital Employed (avg)

1.64

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

NA (Loss Making)

Industry P/E

Price to Book Value

3.21

EV to EBIT

1591.08

EV to EBITDA

44.67

EV to Capital Employed

2.02

EV to Sales

1.57

PEG Ratio

Dividend Yield

ROCE (Latest)

0.13%

ROE (Latest)

-8.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

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

3What is working for the Company

NET PROFIT(Q)

At CNY 81.74 MM has Grown at 548.75%

-27What is not working for the Company

NET PROFIT(HY)

At CNY -425.99 MM has Grown at -231.49%

OPERATING CASH FLOW(Y)

Lowest at CNY -622.86 MM

ROCE(HY)

Lowest at -3.92%

RAW MATERIAL COST(Y)

Grown by 37.19% (YoY

CASH AND EQV(HY)

Lowest at CNY 1,730.04 MM

DEBT-EQUITY RATIO (HY)

Highest at 138.54 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.7%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.33%

NET SALES(Q)

At CNY 2,803.31 MM has Fallen at -8.3%

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

Net Profit

At CNY 81.74 MM has Grown at 548.75%

over average net sales of the previous four periods of CNY 12.6 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Here's what is not working for Chongqing Taiji Industry (Group) Co., Ltd.

Operating Cash Flow

Lowest at CNY -622.86 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 2,803.31 MM has Fallen at -8.3%

over average net sales of the previous four periods of CNY 3,056.99 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 1,730.04 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 138.54 %

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

Inventory Turnover Ratio

Lowest at 2.7%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.33%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 37.19% (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