Chongqing Water Group Co., Ltd. (601158) 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 Water Group Co., Ltd.

Why is Chongqing Water Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.89% and Operating profit at -4.29% over the last 5 years

Flat results in Mar 25

NET PROFIT(9M) At CNY 606.09 MM has Grown at -24.45%
INTEREST(HY) At CNY 154.42 MM has Grown at 6.3%
INTEREST COVERAGE RATIO(Q) Lowest at 454.11

With ROE of 4.90%, it has a very attractive valuation with a 1.32 Price to Book Value

Over the past year, while the stock has generated a return of -6.60%, its profits have fallen by -20%
At the current price, the company has a high dividend yield of 2.8

Below par performance in long term as well as near term

Along with generating -6.60% 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 hold?

Overall Portfolio exposure to Chongqing Water Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Utilities should be less than 30%

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

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

Is Chongqing Water Group Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chongqing Water Group Co., Ltd.

-6.6%

-0.53

15.24%

China Shanghai Composite

14.77%

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)

4.89%

EBIT Growth (5y)

-4.29%

EBIT to Interest (avg)

8.40

Debt to EBITDA (avg)

1.80

Net Debt to Equity (avg)

0.51

Sales to Capital Employed (avg)

0.27

Tax Ratio

23.68%

Dividend Payout Ratio

80.07%

Pledged Shares

Institutional Holding

ROCE (avg)

6.53%

ROE (avg)

9.34%

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

1.32

EV to EBIT

31.29

EV to EBITDA

10.19

EV to Capital Employed

1.21

EV to Sales

4.41

PEG Ratio

Dividend Yield

2.81%

ROCE (Latest)

3.86%

ROE (Latest)

4.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

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

8What is working for the Company

NET PROFIT(HY)

At CNY 292.9 MM has Grown at 313.3%

NET SALES(HY)

At CNY 3,463.36 MM has Grown at 18.66%

RAW MATERIAL COST(Y)

Fallen by -28% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 11.87%

-11What is not working for the Company

NET PROFIT(9M)

At CNY 606.09 MM has Grown at -24.45%

INTEREST(HY)

At CNY 154.42 MM has Grown at 6.3%

INTEREST COVERAGE RATIO(Q)

Lowest at 454.11

CASH AND EQV(HY)

Lowest at CNY 5,232.35 MM

OPERATING PROFIT(Q)

Lowest at CNY 298.09 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 18.11 %

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

Net Profit

At CNY 292.9 MM has Grown at 313.3%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 3,463.36 MM has Grown at 18.66%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 11.87%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -28% (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 Water Group Co., Ltd.

Interest Coverage Ratio

Lowest at 454.11

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 154.42 MM has Grown at 6.3%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 298.09 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 18.11 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 5,232.35 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents