MECOM Power & Construction Ltd. (1183) 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

Analogue Holdings Ltd.

China Communications Services Corp. Ltd.

MECOM Power & Construction Ltd.

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Chi Kan Holdings Ltd.

Chevalier International Holdings Ltd.

Shenzhen Investment Holdings Bay Area Development Co. Ltd.

Metallurgical Corp. of China Ltd.

HKE Holdings Ltd.

Grand Ming Group Holdings Ltd.

SINOPEC Engineering (Group) Co., Ltd.

Why is MECOM Power & Construction Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate -19.66% of over the last 5 years

With ROE of 5.34%, it has a Very Expensive valuation with a 1.89 Price to Book Value

Over the past year, while the stock has generated a return of 14.19%, its profits have risen by 162.4% ; the PEG ratio of the company is 0.2

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 Construction)

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

Is MECOM Power & Construction Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

MECOM Power & Construction Ltd.

14.19%

-0.08

72.88%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.03%

EBIT Growth (5y)

-19.66%

EBIT to Interest (avg)

56.00

Debt to EBITDA (avg)

3.62

Net Debt to Equity (avg)

0.45

Sales to Capital Employed (avg)

2.25

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

25.34%

ROE (avg)

13.25%

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

1.89

EV to EBIT

37.47

EV to EBITDA

29.57

EV to Capital Employed

1.74

EV to Sales

0.53

PEG Ratio

0.22

Dividend Yield

ROCE (Latest)

4.66%

ROE (Latest)

5.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bullish

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

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

13What is working for the Company

PRE-TAX PROFIT(Q)

At HKD 23.85 MM has Grown at 806.64%

OPERATING CASH FLOW(Y)

Highest at HKD 231.97 MM

NET PROFIT(Q)

At HKD 15.31 MM has Grown at 123.62%

CASH AND EQV(HY)

Highest at HKD 157.19 MM

DEBT-EQUITY RATIO (HY)

Lowest at 20.17 %

DEBTORS TURNOVER RATIO(HY)

Highest at 3.45 times

NET SALES(Q)

Highest at HKD 779.77 MM

-3What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 35.26% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 11.44 times

Here's what is working for MECOM Power & Construction Ltd.

Pre-Tax Profit

At HKD 23.85 MM has Grown at 806.64%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (HKD MM)

Net Profit

At HKD 15.31 MM has Grown at 123.62%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (HKD MM)

Operating Cash Flow

Highest at HKD 231.97 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Net Sales

Highest at HKD 779.77 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Cash and Eqv

Highest at HKD 157.19 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 20.17 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.45 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at HKD 13.43 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Depreciation

At HKD 13.43 MM has Grown at 136.38%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for MECOM Power & Construction Ltd.

Inventory Turnover Ratio

Lowest at 11.44 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 35.26% (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