Jiangsu Chunlan Refrigerating Equipment Stock Co., Ltd. (600854) 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 Chunlan Refrigerating Equipment Stock Co., Ltd.

Why is Jiangsu Chunlan Refrigerating Equipment Stock Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.79%

The company has been able to generate a Return on Capital Employed (avg) of 1.79% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -17.91% and Operating profit at -26.45% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(9M) At CNY 0.01 MM has Grown at inf%
PRE-TAX PROFIT(Q) At CNY 0.98 MM has Fallen at -96.92%
NET PROFIT(Q) At CNY 1.42 MM has Fallen at -95.71%

With ROE of 5.47%, it has a attractive valuation with a 1.10 Price to Book Value

Over the past year, while the stock has generated a return of 10.73%, its profits have fallen by -44.4%
At the current price, the company has a high dividend yield of 2.3

Underperformed the market in the last 1 year

The stock has generated a return of 10.73% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Jiangsu Chunlan Refrigerating Equipment Stock Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Jiangsu Chunlan Refrigerating Equipment Stock Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangsu Chunlan Refrigerating Equipment Stock Co., Ltd.

3.25%

1.65

24.88%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-17.91%

EBIT Growth (5y)

-26.45%

EBIT to Interest (avg)

12.18

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.47

Sales to Capital Employed (avg)

0.05

Tax Ratio

2.34%

Dividend Payout Ratio

46.75%

Pledged Shares

Institutional Holding

ROCE (avg)

1.79%

ROE (avg)

5.10%

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

1.10

EV to EBIT

-53.63

EV to EBITDA

-394.71

EV to Capital Employed

1.19

EV to Sales

19.70

PEG Ratio

Dividend Yield

2.33%

ROCE (Latest)

-2.21%

ROE (Latest)

5.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

9What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -49.18 %

CASH AND EQV(HY)

Highest at CNY 2,302.8 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 0.5 times

NET SALES(Q)

Highest at CNY 33.12 MM

-13What is not working for the Company

INTEREST(9M)

At CNY 0.01 MM has Grown at inf%

PRE-TAX PROFIT(Q)

At CNY 0.98 MM has Fallen at -96.92%

NET PROFIT(Q)

At CNY 1.42 MM has Fallen at -95.71%

ROCE(HY)

Lowest at 4.94%

RAW MATERIAL COST(Y)

Grown by 50.67% (YoY

Here's what is working for Jiangsu Chunlan Refrigerating Equipment Stock Co., Ltd.

Net Sales

At CNY 33.12 MM has Grown at 46.33%

over average net sales of the previous four periods of CNY 22.64 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at -49.18 % 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

Net Sales

Highest at CNY 33.12 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 2,302.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 0.5 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Jiangsu Chunlan Refrigerating Equipment Stock Co., Ltd.

Interest

At CNY 0.01 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 0.98 MM has Fallen at -96.92%

over average net sales of the previous four periods of CNY 31.91 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 1.42 MM has Fallen at -95.71%

over average net sales of the previous four periods of CNY 33.02 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 50.67% (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 7.82 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income