Jiangxi Hongdu Aviation Industry Co., Ltd. (600316) 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

Jiangxi Hongdu Aviation Industry Co., Ltd.

Why is Jiangxi Hongdu Aviation Industry Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.46%

The company has been able to generate a Return on Capital Employed (avg) of 0.46% 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 -0.44% and Operating profit at -28.75% 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 1.93% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -0.44% and Operating profit at -28.75% over the last 5 years

With ROE of 0.75%, it has a expensive valuation with a 4.78 Price to Book Value

Over the past year, while the stock has generated a return of -4.26%, its profits have risen by 37.8% ; the PEG ratio of the company is 16.8
At the current price, the company has a high dividend yield of 0

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 Aerospace & Defense)

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

Is Jiangxi Hongdu Aviation Industry Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangxi Hongdu Aviation Industry Co., Ltd.

-4.26%

1.80

43.87%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.44%

EBIT Growth (5y)

-28.75%

EBIT to Interest (avg)

2.47

Debt to EBITDA (avg)

3.10

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

0.91

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

31.08%

Pledged Shares

Institutional Holding

ROCE (avg)

0.46%

ROE (avg)

1.93%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

635

Industry P/E

Price to Book Value

4.78

EV to EBIT

1167.18

EV to EBITDA

222.48

EV to Capital Employed

5.18

EV to Sales

4.63

PEG Ratio

16.80

Dividend Yield

0.05%

ROCE (Latest)

0.44%

ROE (Latest)

0.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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

14What is working for the Company

NET SALES(Q)

At CNY 507.83 MM has Grown at 89.87%

NET PROFIT(9M)

At CNY 27.16 MM has Grown at 66.53%

RAW MATERIAL COST(Y)

Fallen by -38.55% (YoY

-8What is not working for the Company

OPERATING PROFIT MARGIN(Q)

Lowest at -1.58 %

CASH AND EQV(HY)

Lowest at CNY 356.82 MM

DEBT-EQUITY RATIO (HY)

Highest at 12.78 %

OPERATING PROFIT(Q)

Lowest at CNY -8.05 MM

PRE-TAX PROFIT(Q)

Lowest at CNY -7.49 MM

Here's what is working for Jiangxi Hongdu Aviation Industry Co., Ltd.

Net Sales

At CNY 507.83 MM has Grown at 89.87%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Net Profit

At CNY 27.16 MM has Grown at 66.53%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -38.55% (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 Jiangxi Hongdu Aviation Industry Co., Ltd.

Operating Profit Margin

Lowest at -1.58 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at CNY -8.05 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY -7.49 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Cash and Eqv

Lowest at CNY 356.82 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 12.78 %

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