Jianshe Industry Group (Yunnan) Co., Ltd. (002265) 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

Jianshe Industry Group (Yunnan) Co., Ltd.

Why is Jianshe Industry Group (Yunnan) Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.57%

The company has been able to generate a Return on Capital Employed (avg) of 1.57% signifying low profitability per unit of total capital (equity and debt)

Positive results in Mar 26

NET SALES(HY) At CNY 3,215.33 MM has Grown at 52.77%
OPERATING CASH FLOW(Y) Highest at CNY 585.15 MM
NET PROFIT(HY) Higher at CNY 237.26 MM

With ROE of 5.99%, it has a expensive valuation with a 5.18 Price to Book Value

Over the past year, while the stock has generated a return of -39.83%, its profits have fallen by -22.3%

Below par performance in long term as well as near term

Along with generating -39.83% 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 Jianshe Industry Group (Yunnan) Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Jianshe Industry Group (Yunnan) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jianshe Industry Group (Yunnan) Co., Ltd.

-39.83%

1.59

53.14%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

44.78%

EBIT Growth (5y)

36.56%

EBIT to Interest (avg)

-0.66

Debt to EBITDA (avg)

0.63

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

0.93

Tax Ratio

14.86%

Dividend Payout Ratio

33.73%

Pledged Shares

Institutional Holding

ROCE (avg)

1.57%

ROE (avg)

4.05%

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

5.18

EV to EBIT

140.84

EV to EBITDA

62.57

EV to Capital Employed

6.92

EV to Sales

3.92

PEG Ratio

Dividend Yield

ROCE (Latest)

4.92%

ROE (Latest)

5.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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

15What is working for the Company

NET SALES(HY)

At CNY 3,215.33 MM has Grown at 52.77%

OPERATING CASH FLOW(Y)

Highest at CNY 585.15 MM

NET PROFIT(HY)

Higher at CNY 237.26 MM

CASH AND EQV(HY)

Highest at CNY 5,328.29 MM

DEBT-EQUITY RATIO (HY)

Lowest at -29.35 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4.25 times

-6What is not working for the Company

INTEREST(Q)

At CNY 1.47 MM has Grown at inf%

RAW MATERIAL COST(Y)

Grown by 18.69% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 1.41 %

PRE-TAX PROFIT(Q)

At CNY 34.96 MM has Fallen at -38.21%

NET PROFIT(Q)

At CNY 34.49 MM has Fallen at -40.72%

Here's what is working for Jianshe Industry Group (Yunnan) Co., Ltd.

Net Sales

At CNY 3,215.33 MM has Grown at 52.77%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 585.15 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 5,328.29 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -29.35 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 4.25 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 Jianshe Industry Group (Yunnan) Co., Ltd.

Interest

At CNY 1.47 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 1.41 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY 34.96 MM has Fallen at -38.21%

over average net sales of the previous four periods of CNY 56.57 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 34.49 MM has Fallen at -40.72%

over average net sales of the previous four periods of CNY 58.18 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 18.69% (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