Jiangsu Changbao Steeltube Co., Ltd. (002478) 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 Changbao Steeltube Co., Ltd.

Why is Jiangsu Changbao Steeltube Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 6.73% and Operating profit at 1.87% over the last 5 years

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

INTEREST(9M) At CNY 2.71 MM has Grown at 24.99%
OPERATING PROFIT MARGIN(Q) Lowest at 10.36 %

With ROE of 10.31%, it has a fair valuation with a 0.87 Price to Book Value

Over the past year, while the stock has generated a return of 99.64%, its profits have fallen by -11.9%
At the current price, the company has a high dividend yield of 3.9

Market Beating performance in long term as well as near term

Along with generating 99.64% 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 Jiangsu Changbao Steeltube Co., Ltd. should be less than 10%
Overall Portfolio exposure to 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 Ferrous Metals)

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

Is Jiangsu Changbao Steeltube Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangsu Changbao Steeltube Co., Ltd.

94.42%

2.23

47.90%

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)

6.73%

EBIT Growth (5y)

1.87%

EBIT to Interest (avg)

76.13

Debt to EBITDA (avg)

0.37

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.86

Tax Ratio

11.57%

Dividend Payout Ratio

31.27%

Pledged Shares

Institutional Holding

ROCE (avg)

8.85%

ROE (avg)

9.65%

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

0.87

EV to EBIT

8.73

EV to EBITDA

5.88

EV to Capital Employed

0.84

EV to Sales

0.73

PEG Ratio

Dividend Yield

3.92%

ROCE (Latest)

9.67%

ROE (Latest)

10.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 904.21 MM

DEBT-EQUITY RATIO (HY)

Lowest at -24.64 %

RAW MATERIAL COST(Y)

Fallen by -7.53% (YoY

CASH AND EQV(HY)

Highest at CNY 6,045.31 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.93 times

-5What is not working for the Company

INTEREST(9M)

At CNY 2.71 MM has Grown at 24.99%

OPERATING PROFIT MARGIN(Q)

Lowest at 10.36 %

Here's what is working for Jiangsu Changbao Steeltube Co., Ltd.

Debt-Equity Ratio

Lowest at -24.64 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Operating Cash Flow

Highest at CNY 904.21 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 6,045.31 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 3.93 times

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 -7.53% (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 Changbao Steeltube Co., Ltd.

Interest

At CNY 2.71 MM has Grown at 24.99%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 10.36 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales