Dalian Friendship (Group) Co., Ltd. (000679) 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

Dalian Friendship (Group) Co., Ltd.

Why is Dalian Friendship (Group) Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 19.90% and Operating profit at -4.12% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 0.12% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 19.90% and Operating profit at -4.12% over the last 5 years

The company has declared Negative results for the last 10 consecutive quarters

NET SALES(HY) At CNY 275.7 MM has Grown at -19.33%
OPERATING CASH FLOW(Y) Lowest at CNY -177.42 MM
ROCE(HY) Lowest at -50.19%

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 Realty)

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

Is Dalian Friendship (Group) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Dalian Friendship (Group) Co., Ltd.

10.43%

4.34

48.46%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.90%

EBIT Growth (5y)

-4.12%

EBIT to Interest (avg)

-0.74

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

0.36%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.12%

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

15.18

EV to EBIT

-42.04

EV to EBITDA

-72.04

EV to Capital Employed

17.30

EV to Sales

5.26

PEG Ratio

Dividend Yield

ROCE (Latest)

-41.16%

ROE (Latest)

-67.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -20.68% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY -15.26 MM

NET PROFIT(Q)

Highest at CNY -12.56 MM

EPS(Q)

Highest at CNY -0.04

-19What is not working for the Company

NET SALES(HY)

At CNY 275.7 MM has Grown at -19.33%

OPERATING CASH FLOW(Y)

Lowest at CNY -177.42 MM

ROCE(HY)

Lowest at -50.19%

INTEREST(Q)

At CNY 9.85 MM has Grown at 24.47%

CASH AND EQV(HY)

Lowest at CNY 217.81 MM

DEBT-EQUITY RATIO (HY)

Highest at -9.85 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.5 times

Here's what is working for Dalian Friendship (Group) Co., Ltd.

Pre-Tax Profit

Highest at CNY -15.26 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY -12.56 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY -0.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -20.68% (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 Dalian Friendship (Group) Co., Ltd.

Net Sales

At CNY 275.7 MM has Grown at -19.33%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY -177.42 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

At CNY 9.85 MM has Grown at 24.47%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 217.81 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -9.85 %

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

Debtors Turnover Ratio

Lowest at 8.5 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio