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

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 -1.38% and Operating profit at -32.23% 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 -1.38% and Operating profit at -32.23% 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 16.97%, 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.

15.82%

2.94

42.41%

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)

-1.38%

EBIT Growth (5y)

-32.23%

EBIT to Interest (avg)

2.47

Debt to EBITDA (avg)

3.10

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

0.90

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

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

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

INVENTORY TURNOVER RATIO(HY)

Highest at 1.47 times

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -483.02 MM

RAW MATERIAL COST(Y)

Grown by 41.18% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 9.21 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.57 %

NET PROFIT(Q)

Fallen at -30.43%

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

Inventory Turnover Ratio

Highest at 1.47 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 Jiangxi Hongdu Aviation Industry Co., Ltd.

Operating Cash Flow

Lowest at CNY -483.02 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 9.21 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.57 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Fallen at -30.43%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 41.18% (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