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 Management Efficiency with a low ROCE of 5.93%

The company has been able to generate a Return on Capital Employed (avg) of 5.93% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 13.49% and Operating profit at 13.87% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.38% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 13.49% and Operating profit at 13.87% over the last 5 years

Negative results in Jun 26

INTEREST COVERAGE RATIO(Q) Lowest at 1,267.07
INTEREST(Q) Highest at CNY 4.43 MM
PRE-TAX PROFIT(Q) Lowest at CNY 15.23 MM

Below par performance in long term as well as near term

Along with generating -34.38% 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 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.

-35.33%

0.28

59.44%

China Shanghai Composite

3.23%

0.23

14.72%

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)

16.93

Debt to EBITDA (avg)

0.65

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

0.49

Tax Ratio

11.30%

Dividend Payout Ratio

27.08%

Pledged Shares

Institutional Holding

ROCE (avg)

5.76%

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

3.00

EV to EBIT

41.73

EV to EBITDA

26.92

EV to Capital Employed

2.83

EV to Sales

4.87

PEG Ratio

1.06

Dividend Yield

0.57%

ROCE (Latest)

6.79%

ROE (Latest)

6.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Bullish

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 275.64 MM

CASH AND EQV(HY)

Highest at CNY 1,578.79 MM

DEBT-EQUITY RATIO (HY)

Lowest at 7.72 %

DEBTORS TURNOVER RATIO(HY)

Highest at 2.3 times

-24What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,267.07

INTEREST(Q)

Highest at CNY 4.43 MM

PRE-TAX PROFIT(Q)

Lowest at CNY 15.23 MM

NET PROFIT(Q)

Lowest at CNY 15.85 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 275.64 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)

Cash and Eqv

Highest at CNY 1,578.79 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 7.72 %

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 2.3 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Nanjing Develop Advanced Manufacturing Co., Ltd.

Interest

At CNY 4.43 MM has Grown at 72.86%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,267.07

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 15.23 MM has Fallen at -53.19%

over average net sales of the previous four periods of CNY 32.53 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 15.85 MM has Fallen at -45.09%

over average net sales of the previous four periods of CNY 28.86 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

Highest at CNY 4.43 MM

in the last five periods and Increased by 72.86% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

Lowest at CNY 15.23 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 15.85 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)

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