Jiangsu Asia-Pacific Light Alloy Technology Co., Ltd. (002540) 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

Jiangsu Asia-Pacific Light Alloy Technology Co., Ltd.

Why is Jiangsu Asia-Pacific Light Alloy Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 15.95% and Operating profit at 4.73% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY -164.36 MM
INTEREST(HY) At CNY 29.08 MM has Grown at 7.77%
ROCE(HY) Lowest at 7.44%

With ROE of 7.75%, it has a very attractive valuation with a 1.43 Price to Book Value

Over the past year, while the stock has generated a return of -0.78%, its profits have fallen by -25.5%
At the current price, the company has a high dividend yield of 3.3

Below par performance in long term as well as near term

Along with generating -0.78% 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 Jiangsu Asia-Pacific Light Alloy Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Non - Ferrous Metals should be less than 30%

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

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

Is Jiangsu Asia-Pacific Light Alloy Technology Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Jiangsu Asia-Pacific Light Alloy Technology Co., Ltd.

-2.62%

0.44

32.83%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.95%

EBIT Growth (5y)

4.73%

EBIT to Interest (avg)

54.18

Debt to EBITDA (avg)

0.30

Net Debt to Equity (avg)

0.15

Sales to Capital Employed (avg)

1.05

Tax Ratio

7.37%

Dividend Payout Ratio

96.00%

Pledged Shares

Institutional Holding

ROCE (avg)

9.14%

ROE (avg)

9.47%

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

1.43

EV to EBIT

19.98

EV to EBITDA

12.79

EV to Capital Employed

1.38

EV to Sales

1.13

PEG Ratio

Dividend Yield

3.33%

ROCE (Latest)

6.93%

ROE (Latest)

7.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

1What is working for the Company

NET SALES(Q)

Highest at CNY 2,105.36 MM

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -164.36 MM

INTEREST(HY)

At CNY 29.08 MM has Grown at 7.77%

ROCE(HY)

Lowest at 7.44%

DEBT-EQUITY RATIO (HY)

Highest at 18.49 %

INTEREST COVERAGE RATIO(Q)

Lowest at 620.58

RAW MATERIAL COST(Y)

Grown by 5.09% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 92.4 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.39 %

PRE-TAX PROFIT(Q)

Lowest at CNY 88.96 MM

NET PROFIT(Q)

Lowest at CNY 86.43 MM

EPS(Q)

Lowest at CNY 0.07

Here's what is working for Jiangsu Asia-Pacific Light Alloy Technology Co., Ltd.

Net Sales

Highest at CNY 2,105.36 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Jiangsu Asia-Pacific Light Alloy Technology Co., Ltd.

Interest Coverage Ratio

Lowest at 620.58

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 29.08 MM has Grown at 7.77%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 18.49 % 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 Cash Flow

Lowest at CNY -164.36 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 92.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.39 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 88.96 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 86.43 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.07

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 5.09% (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