Chow Tai Fook Jewellery Group Ltd. (1929) 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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Why is Chow Tai Fook Jewellery Group Ltd. ?

High Management Efficiency with a high ROCE of 25.49%

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 25.49%

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at HKD 12,283.2 MM
DEBT-EQUITY RATIO (HY) Highest at 104.09 %
INVENTORY TURNOVER RATIO(HY) Lowest at 0.97 times

With ROE of 44.05%, it has a Fair valuation with a 4.85 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -1.22%, its profits have risen by 10.4% ; the PEG ratio of the company is 1.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.22% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Chow Tai Fook Jewellery Group Ltd. should be less than 10%
Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gems, Jewellery And Watches)

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

Is Chow Tai Fook Jewellery Group Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Chow Tai Fook Jewellery Group Ltd.

-1.22%

29.82

40.79%

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)

11.45%

EBIT Growth (5y)

15.71%

EBIT to Interest (avg)

21.41

Debt to EBITDA (avg)

0.94

Net Debt to Equity (avg)

0.48

Sales to Capital Employed (avg)

1.74

Tax Ratio

24.29%

Dividend Payout Ratio

87.79%

Pledged Shares

Institutional Holding

0.05%

ROCE (avg)

25.49%

ROE (avg)

28.27%

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

4.85

EV to EBIT

10.22

EV to EBITDA

9.01

EV to Capital Employed

2.91

EV to Sales

1.61

PEG Ratio

1.06

Dividend Yield

4.56%

ROCE (Latest)

28.42%

ROE (Latest)

44.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

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

4What is working for the Company

ROCE(HY)

Highest at 23.8%

DIVIDEND PAYOUT RATIO(Y)

Highest at 86.11%

RAW MATERIAL COST(Y)

Fallen by -22.27% (YoY

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 12,283.2 MM

DEBT-EQUITY RATIO (HY)

Highest at 104.09 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.97 times

NET SALES(Q)

Lowest at HKD 38,986.1 MM

Here's what is working for Chow Tai Fook Jewellery Group Ltd.

Dividend Payout Ratio

Highest at 86.11%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -22.27% (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 Chow Tai Fook Jewellery Group Ltd.

Operating Cash Flow

Lowest at HKD 12,283.2 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Net Sales

Lowest at HKD 38,986.1 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Debt-Equity Ratio

Highest at 104.09 %

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 0.97 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at HKD 0.12 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income