East China Engineering Science & Technology Co., Ltd. (002140) 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

East China Engineering Science & Technology Co., Ltd.

Why is East China Engineering Science & Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 11.31% and Operating profit at 21.14% over the last 5 years

Negative results in Mar 26

INTEREST(HY) At CNY 38.55 MM has Grown at 244.24%
DEBT-EQUITY RATIO (HY) Highest at 8.51 %
NET SALES(Q) Lowest at CNY 1,941.45 MM

With ROE of 10.36%, it has a fair valuation with a 1.09 Price to Book Value

Over the past year, while the stock has generated a return of 0.76%, its profits have risen by 26.9% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 2.1

Underperformed the market in the last 1 year

The stock has generated a return of 0.76% in the last 1 year, much lower than market (China Shanghai Composite) returns of 16.83%

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 Construction)

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

Is East China Engineering Science & Technology Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

East China Engineering Science & Technology Co., Ltd.

-13.27%

0.35

37.68%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.31%

EBIT Growth (5y)

21.14%

EBIT to Interest (avg)

8.44

Debt to EBITDA (avg)

0.12

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

1.23

Tax Ratio

18.91%

Dividend Payout Ratio

26.57%

Pledged Shares

Institutional Holding

ROCE (avg)

10.52%

ROE (avg)

8.58%

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

1.35

EV to EBIT

10.84

EV to EBITDA

9.94

EV to Capital Employed

1.32

EV to Sales

0.71

PEG Ratio

0.48

Dividend Yield

1.66%

ROCE (Latest)

12.16%

ROE (Latest)

10.36%

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

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 745.93 MM

RAW MATERIAL COST(Y)

Fallen by -28.74% (YoY

-15What is not working for the Company

INTEREST(HY)

At CNY 18.1 MM has Grown at 215.6%

DEBT-EQUITY RATIO (HY)

Highest at 13.21 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 19.9 times

NET SALES(Q)

Fallen at -12.05%

NET PROFIT(Q)

Lowest at CNY 105.51 MM

EPS(Q)

Lowest at CNY 0.15

Here's what is working for East China Engineering Science & Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 745.93 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -28.74% (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 East China Engineering Science & Technology Co., Ltd.

Interest

At CNY 18.1 MM has Grown at 215.6%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Fallen at -12.05%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Profit

Lowest at CNY 105.51 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.15

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 13.21 %

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 19.9 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio