Juneyao Airlines Co., Ltd. (603885) 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

Juneyao Airlines Co., Ltd.

Why is Juneyao Airlines Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.60%

Poor long term growth as Net Sales has grown by an annual rate of 15.13% and Operating profit at 23.60% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Sep 25

INVENTORY TURNOVER RATIO(HY) Lowest at 60.58 times
OPERATING PROFIT MARGIN(Q) Lowest at 13.08 %

With ROE of 10.10%, it has a very expensive valuation with a 3.24 Price to Book Value

Over the past year, while the stock has generated a return of -1.16%, its profits have fallen by -23%
At the current price, the company has a high dividend yield of 0.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.16% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Airline)

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

Is Juneyao Airlines Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Juneyao Airlines Co., Ltd.

-21.24%

0.14

30.26%

China Shanghai Composite

16.78%

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)

17.47%

EBIT Growth (5y)

26.12%

EBIT to Interest (avg)

-0.76

Debt to EBITDA (avg)

24.18

Net Debt to Equity (avg)

2.05

Sales to Capital Employed (avg)

0.75

Tax Ratio

23.82%

Dividend Payout Ratio

41.67%

Pledged Shares

Institutional Holding

ROCE (avg)

2.60%

ROE (avg)

4.37%

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

2.30

EV to EBIT

29.90

EV to EBITDA

9.89

EV to Capital Employed

1.46

EV to Sales

1.87

PEG Ratio

0.65

Dividend Yield

ROCE (Latest)

4.89%

ROE (Latest)

11.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

No Trend

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

12What is working for the Company

ROCE(HY)

Highest at 11.9%

RAW MATERIAL COST(Y)

Fallen by -26.42% (YoY

CASH AND EQV(HY)

Highest at CNY 6,585.95 MM

DEBT-EQUITY RATIO (HY)

Lowest at 318.62 %

PRE-TAX PROFIT(Q)

At CNY 617.67 MM has Grown at 78.13%

NET PROFIT(Q)

At CNY 464.07 MM has Grown at 78.5%

-6What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 55.4 times

INTEREST COVERAGE RATIO(Q)

Lowest at 239.75

OPERATING PROFIT(Q)

Lowest at CNY 568.24 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.5 %

Here's what is working for Juneyao Airlines Co., Ltd.

Pre-Tax Profit

At CNY 617.67 MM has Grown at 78.13%

over average net sales of the previous four periods of CNY 346.76 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 464.07 MM has Grown at 78.5%

over average net sales of the previous four periods of CNY 259.99 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 6,585.95 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 318.62 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -26.42% (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 Juneyao Airlines Co., Ltd.

Interest Coverage Ratio

Lowest at 239.75

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 55.4 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit

Lowest at CNY 568.24 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 9.5 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales