Nanjing Develop Advanced Manufacturing Co., Ltd. (688377) 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 Develop Advanced Manufacturing Co., Ltd.

Why is Nanjing Develop Advanced Manufacturing Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 9.73% and Operating profit at 0.15% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(HY) At CNY 6.73 MM has Grown at 164.9%

With ROE of 4.49%, it has a very expensive valuation with a 4.18 Price to Book Value

Over the past year, while the stock has generated a return of 169.57%, its profits have fallen by -29.9%
At the current price, the company has a high dividend yield of 0.4

Market Beating performance in long term as well as near term

Along with generating 169.57% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Oil)

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

Is Nanjing Develop Advanced Manufacturing Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nanjing Develop Advanced Manufacturing Co., Ltd.

24.03%

4.28

53.53%

China Shanghai Composite

23.91%

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)

13.49%

EBIT Growth (5y)

13.87%

EBIT to Interest (avg)

16.64

Debt to EBITDA (avg)

0.56

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

0.49

Tax Ratio

7.63%

Dividend Payout Ratio

27.08%

Pledged Shares

Institutional Holding

ROCE (avg)

5.93%

ROE (avg)

5.38%

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

3.49

EV to EBIT

48.41

EV to EBITDA

31.23

EV to Capital Employed

3.29

EV to Sales

5.65

PEG Ratio

1.23

Dividend Yield

0.83%

ROCE (Latest)

6.79%

ROE (Latest)

6.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 284.18 MM

RAW MATERIAL COST(Y)

Fallen by -29.8% (YoY

NET PROFIT(9M)

Higher at CNY 84.98 MM

-20What is not working for the Company

INTEREST(HY)

At CNY 5.23 MM has Grown at 52.13%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,122.1

OPERATING PROFIT(Q)

Lowest at CNY 28.77 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.28 %

PRE-TAX PROFIT(Q)

Lowest at CNY 20.03 MM

NET PROFIT(Q)

Lowest at CNY 17.15 MM

EPS(Q)

Lowest at CNY 0.07

Here's what is working for Nanjing Develop Advanced Manufacturing Co., Ltd.

Operating Cash Flow

Highest at CNY 284.18 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -29.8% (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 Develop Advanced Manufacturing Co., Ltd.

Interest

At CNY 5.23 MM has Grown at 52.13%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,122.1

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 17.15 MM has Fallen at -42.54%

over average net sales of the previous four periods of CNY 29.84 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 28.77 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 10.28 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 20.03 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 20.03 MM has Fallen at -39%

over average net sales of the previous four periods of CNY 32.84 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 17.15 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.07

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)