Jiangsu Alcha Aluminium Group Co., Ltd. (002160) 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

Jiangsu Alcha Aluminium Group Co., Ltd.

Why is Jiangsu Alcha Aluminium Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.38%

The company has been able to generate a Return on Capital Employed (avg) of 2.38% 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 16.62% and Operating profit at 22.36% 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 1.63% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 16.62% and Operating profit at 22.36% over the last 5 years

The company has declared negative results in Jan 70 after 4 consecutive negative quarters

INTEREST COVERAGE RATIO(Q) Lowest at 85
DEBT-EQUITY RATIO (HY) Highest at 72.75 %
OPERATING PROFIT(Q) Lowest at CNY 21.43 MM

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 Non - Ferrous Metals)

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

Is Jiangsu Alcha Aluminium Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangsu Alcha Aluminium Group Co., Ltd.

-100.0%

3.00

40.08%

China Shanghai Composite

15.19%

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)

16.62%

EBIT Growth (5y)

22.36%

EBIT to Interest (avg)

1.07

Debt to EBITDA (avg)

14.56

Net Debt to Equity (avg)

0.73

Sales to Capital Employed (avg)

1.09

Tax Ratio

36.41%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.38%

ROE (avg)

1.63%

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

0.77

EV to EBIT

35.31

EV to EBITDA

18.10

EV to Capital Employed

0.87

EV to Sales

0.68

PEG Ratio

1.02

Dividend Yield

ROCE (Latest)

2.46%

ROE (Latest)

1.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

21What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 33.86 MM

NET SALES(9M)

At CNY 5,993.21 MM has Grown at 17.95%

ROCE(HY)

Highest at 2.93%

PRE-TAX PROFIT(Q)

At CNY 21.98 MM has Grown at 199.66%

NET PROFIT(Q)

At CNY 14.66 MM has Grown at 154.35%

RAW MATERIAL COST(Y)

Fallen by -21.67% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.71%

-5What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 85

DEBT-EQUITY RATIO (HY)

Highest at 72.75 %

OPERATING PROFIT(Q)

Lowest at CNY 21.43 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.18 %

Here's what is working for Jiangsu Alcha Aluminium Group Co., Ltd.

Operating Cash Flow

Highest at CNY 33.86 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 21.98 MM has Grown at 199.66%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 14.66 MM has Grown at 154.35%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 5,993.21 MM has Grown at 17.95%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 3.71%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -21.67% (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 Jiangsu Alcha Aluminium Group Co., Ltd.

Interest Coverage Ratio

Lowest at 85

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 21.43 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.18 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 72.75 %

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

Non Operating Income

Highest at CNY 1.17 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income