Hubei Three Gorges Tourism Group Co., Ltd. (002627) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hubei Three Gorges Tourism Group Co., Ltd.

Why is Hubei Three Gorges Tourism Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -16.72% and Operating profit at 41.38% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

NET SALES(Q) At CNY 136.9 MM has Fallen at -24.54%
INTEREST COVERAGE RATIO(Q) Lowest at 54.39
NET PROFIT(Q) At CNY 16.65 MM has Fallen at -44.66%

With ROE of 3.65%, it has a fair valuation with a 0.98 Price to Book Value

Over the past year, while the stock has generated a return of 21.85%, its profits have fallen by -2%
At the current price, the company has a high dividend yield of 2.4

Market Beating performance in long term as well as near term

Along with generating 21.85% returns in the last 1 year, the stock has outperformed 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 Three Gorges Tourism Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is Hubei Three Gorges Tourism Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hubei Three Gorges Tourism Group Co., Ltd.

27.27%

0.96

35.91%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-16.72%

EBIT Growth (5y)

41.38%

EBIT to Interest (avg)

2.45

Debt to EBITDA (avg)

0.34

Net Debt to Equity (avg)

-0.32

Sales to Capital Employed (avg)

0.34

Tax Ratio

23.68%

Dividend Payout Ratio

62.38%

Pledged Shares

Institutional Holding

ROCE (avg)

3.01%

ROE (avg)

3.21%

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

0.98

EV to EBIT

26.17

EV to EBITDA

9.63

EV to Capital Employed

0.97

EV to Sales

2.73

PEG Ratio

Dividend Yield

2.45%

ROCE (Latest)

3.71%

ROE (Latest)

3.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,005.57 MM

RAW MATERIAL COST(Y)

Fallen by -39.44% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 65.25%

-20What is not working for the Company

NET SALES(Q)

At CNY 136.9 MM has Fallen at -24.54%

INTEREST COVERAGE RATIO(Q)

Lowest at 54.39

NET PROFIT(Q)

At CNY 16.65 MM has Fallen at -44.66%

OPERATING PROFIT(Q)

Lowest at CNY 1.17 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.85 %

PRE-TAX PROFIT(Q)

At CNY 19.72 MM has Fallen at -37.93%

Here's what is working for Hubei Three Gorges Tourism Group Co., Ltd.

Operating Cash Flow

Highest at CNY 1,005.57 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 65.25%

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 -39.44% (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 Three Gorges Tourism Group Co., Ltd.

Net Sales

At CNY 136.9 MM has Fallen at -24.54%

over average net sales of the previous four periods of CNY 181.43 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 54.39

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 16.65 MM has Fallen at -44.66%

over average net sales of the previous four periods of CNY 30.09 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 1.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.85 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY 19.72 MM has Fallen at -37.93%

over average net sales of the previous four periods of CNY 31.77 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)