Hubei Chutian Smart Communication Co., Ltd. (600035) 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

Hubei Chutian Smart Communication Co., Ltd.

Why is Hubei Chutian Smart Communication Co., Ltd. ?

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 16.42% and Operating profit at 32.05% 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 10.19% signifying low profitability per unit of shareholders funds

Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 1,580.41 MM
NET PROFIT(HY) At CNY 291.95 MM has Grown at -23.61%
ROCE(HY) Lowest at 7.72%

With ROE of 8.36%, it has a fair valuation with a 0.73 Price to Book Value

Over the past year, while the stock has generated a return of -4.52%, its profits have fallen by -11.7%
At the current price, the company has a high dividend yield of 4.3

Below par performance in long term as well as near term

Along with generating -4.52% 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 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 Construction)

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

Is Hubei Chutian Smart Communication Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hubei Chutian Smart Communication Co., Ltd.

-18.44%

-0.44

14.92%

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)

16.32%

EBIT Growth (5y)

-13.21%

EBIT to Interest (avg)

4.59

Debt to EBITDA (avg)

3.23

Net Debt to Equity (avg)

0.85

Sales to Capital Employed (avg)

0.26

Tax Ratio

28.33%

Dividend Payout Ratio

47.72%

Pledged Shares

Institutional Holding

ROCE (avg)

9.41%

ROE (avg)

10.19%

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

0.67

EV to EBIT

23.85

EV to EBITDA

11.75

EV to Capital Employed

0.83

EV to Sales

2.31

PEG Ratio

Dividend Yield

4.52%

ROCE (Latest)

3.48%

ROE (Latest)

4.60%

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

10What is working for the Company

NET SALES(HY)

At CNY 3,934.23 MM has Grown at 35.03%

RAW MATERIAL COST(Y)

Fallen by -0.66% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 61.6 times

PRE-TAX PROFIT(Q)

At CNY 350.48 MM has Grown at 87.38%

NET PROFIT(Q)

At CNY 239.24 MM has Grown at 77.72%

-19What is not working for the Company

NET PROFIT(HY)

At CNY 209.07 MM has Grown at -45.18%

OPERATING CASH FLOW(Y)

Lowest at CNY 1,530.01 MM

ROCE(HY)

Lowest at 5.58%

DEBT-EQUITY RATIO (HY)

Highest at 96.99 %

NET SALES(Q)

Lowest at CNY 1,057.16 MM

Here's what is working for Hubei Chutian Smart Communication Co., Ltd.

Pre-Tax Profit

At CNY 350.48 MM has Grown at 87.38%

over average net sales of the previous four periods of CNY 187.04 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 239.24 MM has Grown at 77.72%

over average net sales of the previous four periods of CNY 134.62 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 61.6 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -0.66% (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 Hubei Chutian Smart Communication Co., Ltd.

Net Sales

At CNY 1,057.16 MM has Fallen at -35.63%

over average net sales of the previous four periods of CNY 1,642.27 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 1,530.01 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 96.99 % and Grown

In each half year 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

Net Sales

Lowest at CNY 1,057.16 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)