Friend Co., Ltd. (China)

Market Cap: Small Cap
Industry: Transport Services
ISIN: CNE1000042N5

CNY

9.82

-0.2 (-2.0%)

Jun 25

SHG

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Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Friend Co., Ltd. (China)

Why is Friend Co., Ltd. (China) ?

Poor long term growth as Net Sales has grown by an annual rate of 14.25% and Operating profit at 12.71% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

DEBT-EQUITY RATIO (HY) Highest at 59.78 %
INTEREST(Q) At CNY 2.84 MM has Grown at 31.55%

With ROE of 8.57%, it has a very expensive valuation with a 2.10 Price to Book Value

Over the past year, while the stock has generated a return of 15.40%, its profits have fallen by -0.3%
At the current price, the company has a high dividend yield of 1.3

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 Transport Services)

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

Is Friend Co., Ltd. (China) for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Friend Co., Ltd. (China)

-27.26%

0.93

42.64%

China Shanghai Composite

19.22%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.46%

EBIT Growth (5y)

1.97%

EBIT to Interest (avg)

52.32

Debt to EBITDA (avg)

3.39

Net Debt to Equity (avg)

0.59

Sales to Capital Employed (avg)

1.45

Tax Ratio

25.47%

Dividend Payout Ratio

52.16%

Pledged Shares

Institutional Holding

ROCE (avg)

8.46%

ROE (avg)

9.54%

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

0.35

EV to EBIT

8.07

EV to EBITDA

6.88

EV to Capital Employed

0.58

EV to Sales

0.34

PEG Ratio

0.31

Dividend Yield

3.35%

ROCE (Latest)

7.23%

ROE (Latest)

8.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-13What is not working for the Company

INTEREST(HY)

At CNY 4.21 MM has Grown at 164.36%

NET SALES(Q)

At CNY 2,543.64 MM has Fallen at -13.5%

RAW MATERIAL COST(Y)

Grown by 8.36% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.43 times

Here's what is not working for Friend Co., Ltd. (China)

Interest

At CNY 4.21 MM has Grown at 164.36%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 2,543.64 MM has Fallen at -13.5%

over average net sales of the previous four periods of CNY 2,940.71 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 5.43 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 8.36% (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