First Capital Securities Co., Ltd. (002797) 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

First Capital Securities Co., Ltd.

Why is First Capital Securities Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 4.10%

Poor long term growth as Net Sales has grown by an annual rate of 5.80% and Operating profit at 7.17%
The company has been able to generate a Return on Equity (avg) of 4.10% signifying low profitability per unit of shareholders funds

The company has declared Positive results for the last 4 consecutive quarters

NET SALES(HY) At CNY 2,179.95 MM has Grown at 63.12%
NET PROFIT(HY) At CNY 380.53 MM has Grown at 160.93%
ROCE(HY) Highest at 5.53%

With ROE of 5.82%, it has a expensive valuation with a 1.86 Price to Book Value

Over the past year, while the stock has generated a return of -31.44%, its profits have risen by 138.6% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 1

Below par performance in long term as well as near term

Along with generating -31.44% 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 First Capital Securities Co., Ltd. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

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

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

Is First Capital Securities Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

First Capital Securities Co., Ltd.

-20.48%

1.22

31.84%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.80%

EBIT Growth (5y)

7.17%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

14.11%

Dividend Payout Ratio

34.42%

Pledged Shares

Institutional Holding

ROCE (avg)

4.34%

ROE (avg)

4.10%

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

1.86

EV to EBIT

26.70

EV to EBITDA

22.17

EV to Capital Employed

2.00

EV to Sales

7.21

PEG Ratio

0.23

Dividend Yield

0.98%

ROCE (Latest)

7.49%

ROE (Latest)

5.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

19What is working for the Company

NET SALES(HY)

At CNY 2,179.95 MM has Grown at 63.12%

NET PROFIT(HY)

At CNY 380.53 MM has Grown at 160.93%

ROCE(HY)

Highest at 5.53%

RAW MATERIAL COST(Y)

Fallen by -16.77% (YoY

CASH AND EQV(HY)

Highest at CNY 5,945.11 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 0.51%

-8What is not working for the Company

NET SALES(Q)

At CNY 875.16 MM has Fallen at -8.17%

PRE-TAX PROFIT(Q)

Lowest at CNY 125.44 MM

NET PROFIT(Q)

Lowest at CNY 118 MM

EPS(Q)

Lowest at CNY 0.03

Here's what is working for First Capital Securities Co., Ltd.

Cash and Eqv

Highest at CNY 5,945.11 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 0.51%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -16.77% (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 First Capital Securities Co., Ltd.

Pre-Tax Profit

At CNY 125.44 MM has Fallen at -45.92%

over average net sales of the previous four periods of CNY 231.94 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 118 MM has Fallen at -47.77%

over average net sales of the previous four periods of CNY 225.91 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 875.16 MM has Fallen at -8.17%

over average net sales of the previous four periods of CNY 952.98 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Pre-Tax Profit

Lowest at CNY 125.44 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 118 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.03

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)