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 hold?

Overall Portfolio exposure to Hubei Chutian Smart Communication Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

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

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hubei Chutian Smart Communication Co., Ltd.

-11.59%

-0.44

14.92%

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)

16.42%

EBIT Growth (5y)

32.05%

EBIT to Interest (avg)

4.59

Debt to EBITDA (avg)

3.23

Net Debt to Equity (avg)

0.85

Sales to Capital Employed (avg)

0.23

Tax Ratio

28.33%

Dividend Payout Ratio

35.65%

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

0.73

EV to EBIT

14.01

EV to EBITDA

7.68

EV to Capital Employed

0.87

EV to Sales

3.16

PEG Ratio

Dividend Yield

4.29%

ROCE (Latest)

6.19%

ROE (Latest)

8.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

8What is working for the Company

NET SALES(HY)

At CNY 2,481.87 MM has Grown at 45.78%

DEBTORS TURNOVER RATIO(HY)

Highest at 12.75 times

-16What is not working for the Company

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%

DEBT-EQUITY RATIO (HY)

Highest at 95.84 %

INTEREST COVERAGE RATIO(Q)

Lowest at 491.67

RAW MATERIAL COST(Y)

Grown by 52.79% (YoY

CASH AND EQV(HY)

Lowest at CNY 1,005.09 MM

OPERATING PROFIT(Q)

Lowest at CNY 234.38 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 16.98 %

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

Net Sales

At CNY 2,481.87 MM has Grown at 45.78%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 12.75 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Hubei Chutian Smart Communication Co., Ltd.

Operating Cash Flow

Lowest at CNY 1,580.41 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)

Interest Coverage Ratio

Lowest at 491.67

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 291.95 MM has Grown at -23.61%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 95.84 % 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

Operating Profit

Lowest at CNY 234.38 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 16.98 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 1,005.09 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 52.79% (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