Daqin Railway Co., Ltd. (601006) 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

Daqin Railway Co., Ltd.

Why is Daqin Railway Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 0.58% and Operating profit at -9.98% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 9,230.87 MM
NET PROFIT(HY) At CNY 3,007.07 MM has Grown at -22.2%
ROCE(HY) Lowest at 5.4%

With ROE of 5.14%, it has a very attractive valuation with a 0.73 Price to Book Value

Over the past year, while the stock has generated a return of -19.13%, its profits have fallen by -27.7%
At the current price, the company has a high dividend yield of 3.4

Below par performance in long term as well as near term

Along with generating -19.13% 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 Daqin Railway Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Daqin Railway Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Daqin Railway Co., Ltd.

-19.13%

-1.51

15.14%

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)

0.58%

EBIT Growth (5y)

-9.98%

EBIT to Interest (avg)

12.59

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

0.44

Tax Ratio

28.11%

Dividend Payout Ratio

52.51%

Pledged Shares

Institutional Holding

ROCE (avg)

12.21%

ROE (avg)

9.16%

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

0.73

EV to EBIT

8.89

EV to EBITDA

5.12

EV to Capital Employed

0.61

EV to Sales

0.94

PEG Ratio

Dividend Yield

3.43%

ROCE (Latest)

6.90%

ROE (Latest)

5.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

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

4What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 2,362.4

DEBT-EQUITY RATIO (HY)

Lowest at -28.28 %

INVENTORY TURNOVER RATIO(HY)

Highest at 34.85%

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 9,230.87 MM

NET PROFIT(HY)

At CNY 3,007.07 MM has Grown at -22.2%

ROCE(HY)

Lowest at 5.4%

RAW MATERIAL COST(Y)

Grown by 24.76% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.62%

NET SALES(Q)

Lowest at CNY 17,742.06 MM

Here's what is working for Daqin Railway Co., Ltd.

Interest Coverage Ratio

Highest at 2,362.4

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at -28.28 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 34.85%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Daqin Railway Co., Ltd.

Operating Cash Flow

Lowest at CNY 9,230.87 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)

Net Profit

At CNY 3,007.07 MM has Grown at -22.2%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 17,742.06 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 5.62%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 24.76% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales