CMST Development Co., Ltd. (600787) 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

CMST Development Co., Ltd.

Why is CMST Development Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.08%

The company has been able to generate a Return on Capital Employed (avg) of 2.08% 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 9.93% and Operating profit at 72.71% 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 5.25% signifying low profitability per unit of shareholders funds

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

INTEREST(HY) At CNY 43.78 MM has Grown at 39.8%
PRE-TAX PROFIT(Q) At CNY 116.08 MM has Fallen at -70.83%
NET PROFIT(Q) At CNY 66.22 MM has Fallen at -76.05%

With ROE of 3.70%, it has a fair valuation with a 0.94 Price to Book Value

Over the past year, while the stock has generated a return of -36.62%, its profits have fallen by -50.1%
At the current price, the company has a high dividend yield of 1.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to CMST Development Co., Ltd. should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

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

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

Is CMST Development Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

CMST Development Co., Ltd.

-36.62%

0.38

34.21%

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)

9.93%

EBIT Growth (5y)

72.71%

EBIT to Interest (avg)

3.08

Debt to EBITDA (avg)

3.28

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

3.82

Tax Ratio

26.22%

Dividend Payout Ratio

37.70%

Pledged Shares

Institutional Holding

ROCE (avg)

2.08%

ROE (avg)

5.25%

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

0.94

EV to EBIT

58.52

EV to EBITDA

22.12

EV to Capital Employed

0.94

EV to Sales

0.20

PEG Ratio

Dividend Yield

1.16%

ROCE (Latest)

1.61%

ROE (Latest)

3.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

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

3What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -4.91 %

RAW MATERIAL COST(Y)

Fallen by -17.32% (YoY

-23What is not working for the Company

INTEREST(HY)

At CNY 43.78 MM has Grown at 39.8%

PRE-TAX PROFIT(Q)

At CNY 116.08 MM has Fallen at -70.83%

NET PROFIT(Q)

At CNY 66.22 MM has Fallen at -76.05%

OPERATING CASH FLOW(Y)

Lowest at CNY 1,178.13 MM

ROCE(HY)

Lowest at 1.4%

NET SALES(Q)

Lowest at CNY 13,133.4 MM

Here's what is working for CMST Development Co., Ltd.

Debt-Equity Ratio

Lowest at -4.91 % and Grown

In each half year 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 -17.32% (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 CMST Development Co., Ltd.

Interest

At CNY 43.78 MM has Grown at 39.8%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 116.08 MM has Fallen at -70.83%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 66.22 MM has Fallen at -76.05%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 1,178.13 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 13,133.4 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)