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.

-24.98%

-0.19

31.90%

China Shanghai Composite

21.43%

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)

6.56%

EBIT Growth (5y)

-203.01%

EBIT to Interest (avg)

2.39

Debt to EBITDA (avg)

4.29

Net Debt to Equity (avg)

0.81

Sales to Capital Employed (avg)

0.70

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

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

NA (Loss Making)

Industry P/E

Price to Book Value

1.22

EV to EBIT

-29.95

EV to EBITDA

113.86

EV to Capital Employed

1.10

EV to Sales

1.43

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.68%

ROE (Latest)

-9.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

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

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -31.89% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 9.88 MM

NET PROFIT(Q)

Highest at CNY 6.93 MM

EPS(Q)

Highest at CNY 0.03

-15What is not working for the Company

NET PROFIT(HY)

At CNY -129.86 MM has Grown at -3,710.94%

ROCE(HY)

Lowest at -8.83%

DEBT-EQUITY RATIO (HY)

Highest at 116.93 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.76 times

INTEREST(Q)

Highest at CNY 15.38 MM

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

Pre-Tax Profit

At CNY 9.88 MM has Grown at 118.34%

over average net sales of the previous four periods of CNY -53.88 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 6.93 MM has Grown at 113.54%

over average net sales of the previous four periods of CNY -51.21 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 9.88 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 6.93 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -31.89% (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 Hefei Changqing Machinery Co., Ltd.

Interest

At CNY 15.38 MM has Grown at 17.8%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 15.38 MM

in the last five periods and Increased by 17.8% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 116.93 %

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 5.76 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio