Why is Hubei Chutian Smart Communication Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 9.41%
- The company has been able to generate a Return on Capital Employed (avg) of 9.41% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 16.32% and Operating profit at -13.21% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 10.19% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 16.32% and Operating profit at -13.21% over the last 5 years
4
The company has declared Negative results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at CNY 1,499.98 MM
- NET SALES(Q) At CNY 1,279.75 MM has Fallen at -20.22%
- NET PROFIT(9M) At CNY 407.27 MM has Grown at -19.75%
5
With ROE of 4.60%, it has a very expensive valuation with a 0.60 Price to Book Value
- Over the past year, while the stock has generated a return of -8.06%, its profits have fallen by -46.2%
- At the current price, the company has a high dividend yield of 9.7
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.
-8.52%
-0.87
17.21%
China Shanghai Composite
0.9%
0.22
14.72%
Quality key factors
Factor
Value
Sales Growth (5y)
16.32%
EBIT Growth (5y)
-13.21%
EBIT to Interest (avg)
4.49
Debt to EBITDA (avg)
3.82
Net Debt to Equity (avg)
0.85
Sales to Capital Employed (avg)
0.26
Tax Ratio
41.32%
Dividend Payout Ratio
47.72%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.14%
ROE (avg)
10.19%
Valuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
0.60
EV to EBIT
22.92
EV to EBITDA
11.29
EV to Capital Employed
0.80
EV to Sales
2.22
PEG Ratio
NA
Dividend Yield
9.71%
ROCE (Latest)
3.48%
ROE (Latest)
4.60%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
4What is working for the Company
NET SALES(9M)
At CNY 5,213.97 MM has Grown at 29.87%
NET PROFIT(Q)
At CNY 198.2 MM has Grown at 58.24%
-11What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 1,499.98 MM
NET SALES(Q)
At CNY 1,279.75 MM has Fallen at -20.22%
NET PROFIT(9M)
At CNY 407.27 MM has Grown at -19.75%
RAW MATERIAL COST(Y)
Grown by 8.65% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 125 %
Here's what is working for Hubei Chutian Smart Communication Co., Ltd.
Net Profit
At CNY 198.2 MM has Grown at 58.24%
over average net sales of the previous four periods of CNY 125.26 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Here's what is not working for Hubei Chutian Smart Communication Co., Ltd.
Net Sales
At CNY 1,279.75 MM has Fallen at -20.22%
over average net sales of the previous four periods of CNY 1,604.02 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Operating Cash Flow
Lowest at CNY 1,499.98 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Debt-Equity Ratio
Highest at 125 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 8.65% (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
Non Operating Income
Highest at CNY 0.36 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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