Nanjing Chervon Auto Precision Technology Co., Ltd. (603982) 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 Chervon Auto Precision Technology Co., Ltd.

Why is Nanjing Chervon Auto Precision Technology Co., Ltd. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 15.16% and Operating profit at -220.36% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With a growth in Net Sales of 30.7%, the company declared Very Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 507.3 MM
ROCE(HY) Highest at -17.95%
PRE-TAX PROFIT(Q) Highest at CNY -69.04 MM

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 -0.85%, its profits have risen by 27.1%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.85% 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 hold?

Overall Portfolio exposure to Nanjing Chervon Auto Precision Technology 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 Chervon Auto Precision Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nanjing Chervon Auto Precision Technology Co., Ltd.

-16.08%

-0.05

39.73%

China Shanghai Composite

13.33%

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)

15.16%

EBIT Growth (5y)

-220.36%

EBIT to Interest (avg)

1.19

Debt to EBITDA (avg)

2.94

Net Debt to Equity (avg)

1.84

Sales to Capital Employed (avg)

0.39

Tax Ratio

8.48%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.32%

ROE (avg)

2.89%

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

1.75

EV to EBIT

-17.57

EV to EBITDA

-187.86

EV to Capital Employed

1.27

EV to Sales

2.64

PEG Ratio

Dividend Yield

ROCE (Latest)

-7.24%

ROE (Latest)

-23.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly 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

23What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 507.3 MM

ROCE(HY)

Highest at -17.95%

PRE-TAX PROFIT(Q)

Highest at CNY -69.04 MM

RAW MATERIAL COST(Y)

Fallen by -238.53% (YoY

CASH AND EQV(HY)

Highest at CNY 1,555.32 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.19 times

NET SALES(Q)

At CNY 705.01 MM has Grown at 29.56%

NET PROFIT(Q)

Highest at CNY -64.31 MM

EPS(Q)

Highest at CNY -0.2

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Nanjing Chervon Auto Precision Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 507.3 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)

Pre-Tax Profit

Highest at CNY -69.04 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 705.01 MM has Grown at 29.56%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -69.04 MM has Grown at 53.21%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY -64.31 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY -0.2

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 1,555.32 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.19 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 -238.53% (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