Hefei Changqing Machinery Co., Ltd. (603768) 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

Hefei Changqing Machinery Co., Ltd.

Why is Hefei Changqing Machinery Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.57%

The company has been able to generate a Return on Capital Employed (avg) of 3.57% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 10.56% and Operating profit at -187.98% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 4.50% signifying low profitability per unit of shareholders funds

With a fall in EPS of -2024.82%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CNY -236.4 MM
ROCE(HY) Lowest at -2.93%
INTEREST(Q) At CNY 14.6 MM has Grown at 12.07%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -11.83%, its profits have fallen by -87.7%
At the current price, the company has a high dividend yield of 0.8

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 Auto Components & Equipments)

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

Is Hefei Changqing Machinery Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hefei Changqing Machinery Co., Ltd.

-18.7%

-0.19

31.90%

China Shanghai Composite

15.17%

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)

10.56%

EBIT Growth (5y)

-187.98%

EBIT to Interest (avg)

2.39

Debt to EBITDA (avg)

4.29

Net Debt to Equity (avg)

0.81

Sales to Capital Employed (avg)

0.72

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

58.66%

Pledged Shares

Institutional Holding

ROCE (avg)

3.57%

ROE (avg)

4.50%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

299

Industry P/E

Price to Book Value

1.21

EV to EBIT

257.97

EV to EBITDA

14.48

EV to Capital Employed

1.11

EV to Sales

1.49

PEG Ratio

Dividend Yield

0.77%

ROCE (Latest)

0.43%

ROE (Latest)

0.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

1What is working for the Company

NET SALES(Q)

Highest at CNY 964.27 MM

-31What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -236.4 MM

ROCE(HY)

Lowest at -2.93%

INTEREST(Q)

At CNY 14.6 MM has Grown at 12.07%

DEBT-EQUITY RATIO (HY)

Highest at 101.51 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.74 times

OPERATING PROFIT(Q)

Lowest at CNY -32.81 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.4 %

PRE-TAX PROFIT(Q)

Lowest at CNY -39.4 MM

NET PROFIT(Q)

Lowest at CNY -47.52 MM

EPS(Q)

Lowest at CNY -0.2

Here's what is working for Hefei Changqing Machinery Co., Ltd.

Net Sales

Highest at CNY 964.27 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Hefei Changqing Machinery Co., Ltd.

Pre-Tax Profit

At CNY -39.4 MM has Fallen at -1,102.67%

over average net sales of the previous four periods of CNY -3.28 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -47.52 MM has Fallen at -2,046.6%

over average net sales of the previous four periods of CNY 2.44 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 14.6 MM has Grown at 12.07%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -236.4 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY -32.81 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -3.4 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -39.4 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 -47.52 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.2

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 101.51 %

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

Debtors Turnover Ratio

Lowest at 2.74 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio