Nanjing Securities Co., Ltd. (601990) 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 Securities Co., Ltd.

Why is Nanjing Securities Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 4.90%

Poor long term growth as Net Sales has grown by an annual rate of 7.50% and Operating profit at 10.01%
The company has been able to generate a Return on Equity (avg) of 4.90% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 7.50% and Operating profit at 10.01%

The company has declared Positive results for the last 5 consecutive quarters

ROCE(HY) Highest at 6.9%
PRE-TAX PROFIT(Q) At CNY 361.82 MM has Grown at 128.87%
RAW MATERIAL COST(Y) Fallen by -3.33% (YoY)

With ROE of 5.88%, it has a fair valuation with a 1.68 Price to Book Value

Over the past year, while the stock has generated a return of -7.94%, its profits have risen by 40.3% ; the PEG ratio of the company is 0.7
At the current price, the company has a high dividend yield of 2.1

Below par performance in long term as well as near term

Along with generating -7.94% 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 Capital Markets)

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

Is Nanjing Securities Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nanjing Securities Co., Ltd.

-12.96%

-0.10

19.29%

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)

5.41%

EBIT Growth (5y)

7.64%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

20.54%

Dividend Payout Ratio

44.83%

Pledged Shares

Institutional Holding

ROCE (avg)

6.75%

ROE (avg)

4.90%

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

0.99

EV to EBIT

14.22

EV to EBITDA

13.09

EV to Capital Employed

0.99

EV to Sales

5.08

PEG Ratio

2.77

Dividend Yield

2.05%

ROCE (Latest)

6.95%

ROE (Latest)

4.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 6,669.07 MM

CASH AND EQV(HY)

Highest at CNY 10,064.43 MM

-6What is not working for the Company

NET SALES(HY)

At CNY 1,717.98 MM has Grown at -20.74%

RAW MATERIAL COST(Y)

Grown by 5.95% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.24 times

Here's what is working for Nanjing Securities Co., Ltd.

Operating Cash Flow

Highest at CNY 6,669.07 MM

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 10,064.43 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Nanjing Securities Co., Ltd.

Net Sales

At CNY 1,717.98 MM has Grown at -20.74%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 0.24 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 5.95% (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