CITIC Heavy Industries Co., Ltd. (601608) 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

CITIC Heavy Industries Co., Ltd.

Why is CITIC Heavy Industries Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.55%

The company has been able to generate a Return on Capital Employed (avg) of 1.55% signifying low profitability per unit of total capital (equity and debt)

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 6.70% and Operating profit at 4.68% 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 4.07% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.70% and Operating profit at 4.68% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 596.2 MM
INTEREST COVERAGE RATIO(Q) Lowest at 849.56
DEBTORS TURNOVER RATIO(HY) Lowest at 1.76 times

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 Automobiles)

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

Is CITIC Heavy Industries Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

CITIC Heavy Industries Co., Ltd.

12.55%

1.61

50.05%

China Shanghai Composite

13.33%

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)

6.70%

EBIT Growth (5y)

4.68%

EBIT to Interest (avg)

2.21

Debt to EBITDA (avg)

9.03

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

0.72

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

34.05%

Pledged Shares

Institutional Holding

ROCE (avg)

1.55%

ROE (avg)

4.07%

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

2.61

EV to EBIT

89.29

EV to EBITDA

43.07

EV to Capital Employed

2.37

EV to Sales

3.17

PEG Ratio

Dividend Yield

0.52%

ROCE (Latest)

2.65%

ROE (Latest)

3.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.16% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 20.66 %

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 596.2 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 849.56

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.76 times

OPERATING PROFIT(Q)

Lowest at CNY 66.8 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.47 %

NET PROFIT(Q)

Lowest at CNY 78.86 MM

EPS(Q)

Lowest at CNY 0.02

Here's what is working for CITIC Heavy Industries Co., Ltd.

Debt-Equity Ratio

Lowest at 20.66 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -5.16% (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 CITIC Heavy Industries Co., Ltd.

Operating Cash Flow

Lowest at CNY 596.2 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)

Interest Coverage Ratio

Lowest at 849.56

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 66.8 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.47 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 78.86 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 1.76 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio