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

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 4.48% and Operating profit at 18.13%
The company has been able to generate a Return on Equity (avg) of 4.10% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

NET PROFIT(HY) At CNY 267.96 MM has Grown at -29.58%

With ROE of 5.21%, it has a expensive valuation with a 1.48 Price to Book Value

Over the past year, while the stock has generated a return of -3.71%, its profits have risen by 4.8% ; the PEG ratio of the company is 5.9
At the current price, the company has a high dividend yield of 1.2

Below par performance in long term as well as near term

Along with generating -3.71% 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.

-19.46%

0.95

30.28%

China Shanghai Composite

0.9%

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)

4.48%

EBIT Growth (5y)

18.13%

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

24.41%

Dividend Payout Ratio

40.96%

Pledged Shares

Institutional Holding

ROCE (avg)

5.05%

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

1.52

EV to EBIT

21.64

EV to EBITDA

18.95

EV to Capital Employed

1.62

EV to Sales

5.75

PEG Ratio

6.06

Dividend Yield

1.16%

ROCE (Latest)

7.50%

ROE (Latest)

5.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

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

10What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.92% (YoY

CASH AND EQV(HY)

Highest at CNY 5,491.01 MM

NET SALES(Q)

Highest at CNY 1,305.76 MM

PRE-TAX PROFIT(Q)

Highest at CNY 539 MM

NET PROFIT(Q)

Highest at CNY 490.62 MM

EPS(Q)

Highest at CNY 0.12

-1What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 137.48 %

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

Net Profit

At CNY 490.62 MM has Grown at 113.17%

over average net sales of the previous four periods of CNY 230.16 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 1,305.76 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 1,305.76 MM has Grown at 25.96%

over average net sales of the previous four periods of CNY 1,036.64 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 539 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 539 MM has Grown at 96.96%

over average net sales of the previous four periods of CNY 273.66 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 490.62 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.12

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 5,491.01 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -2.92% (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

Depreciation

At CNY 50.25 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (CNY MM)

Here's what is not working for First Capital Securities Co., Ltd.

Debt-Equity Ratio

Highest at 137.48 %

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

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