Nanjing Aolian AE & EA Co., Ltd. (300585) 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

Nanjing Aolian AE & EA Co., Ltd.

Why is Nanjing Aolian AE & EA Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.63%

The company has been able to generate a Return on Capital Employed (avg) of 1.63% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 0.91% and Operating profit at -195.96% over the last 5 years

The company has declared positive results in Jan 70 after 7 consecutive negative quarters

OPERATING CASH FLOW(Y) Highest at CNY 58.12 MM
DEBT-EQUITY RATIO (HY) Lowest at -7.98 %
NET PROFIT(Q) At CNY 1.53 MM has Grown at 206.41%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -11.97%, its profits have fallen by -104.1%

Below par performance in long term as well as near term

Along with generating -11.97% 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 Nanjing Aolian AE & EA Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Nanjing Aolian AE & EA Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nanjing Aolian AE & EA Co., Ltd.

-8.51%

0.82

51.56%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.91%

EBIT Growth (5y)

-195.96%

EBIT to Interest (avg)

-6.89

Debt to EBITDA (avg)

0.41

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

0.59

Tax Ratio

7.72%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.63%

ROE (avg)

2.70%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.78

EV to EBIT

-125.55

EV to EBITDA

199.15

EV to Capital Employed

3.94

EV to Sales

6.03

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.14%

ROE (Latest)

-1.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

21What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 58.12 MM

DEBT-EQUITY RATIO (HY)

Lowest at -7.98 %

NET PROFIT(Q)

At CNY 1.53 MM has Grown at 206.41%

RAW MATERIAL COST(Y)

Fallen by -13.49% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.42 times

PRE-TAX PROFIT(Q)

At CNY -0.45 MM has Grown at 81.87%

-2What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY -2.17 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -2.03 %

Here's what is working for Nanjing Aolian AE & EA Co., Ltd.

Operating Cash Flow

Highest at CNY 58.12 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

At CNY 1.53 MM has Grown at 206.41%

over average net sales of the previous four periods of CNY -1.44 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at -7.98 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Pre-Tax Profit

At CNY -0.45 MM has Grown at 81.87%

over average net sales of the previous four periods of CNY -2.46 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Highest at 3.42 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -13.49% (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 Nanjing Aolian AE & EA Co., Ltd.

Operating Profit

Lowest at CNY -2.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -2.03 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales