Nanning Baling Technology Co., Ltd. (002592) 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

Nanning Baling Technology Co., Ltd.

Why is Nanning Baling Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.40%

The company has been able to generate a Return on Capital Employed (avg) of 0.40% 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 4.00% and Operating profit at 16.07% over the last 5 years

Flat results in Mar 26

INTEREST(HY) At CNY 0.3 MM has Grown at 2,710.71%
DEBTORS TURNOVER RATIO(HY) Lowest at 5.44 times

With ROE of 10.34%, it has a fair valuation with a 1.73 Price to Book Value

Over the past year, while the stock has generated a return of 3.24%, its profits have risen by 3.3% ; the PEG ratio of the company is 5.1

Underperformed the market in the last 1 year

The stock has generated a return of 3.24% in the last 1 year, much lower than market (China Shanghai Composite) returns of 16.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nanning Baling 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 Nanning Baling Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nanning Baling Technology Co., Ltd.

-18.24%

1.26

42.64%

China Shanghai Composite

8.25%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.00%

EBIT Growth (5y)

16.07%

EBIT to Interest (avg)

7.71

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

0.72

Tax Ratio

1.74%

Dividend Payout Ratio

60.59%

Pledged Shares

Institutional Holding

ROCE (avg)

2.49%

ROE (avg)

5.16%

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

1.78

EV to EBIT

26.72

EV to EBITDA

18.61

EV to Capital Employed

2.04

EV to Sales

1.94

PEG Ratio

5.25

Dividend Yield

4.00%

ROCE (Latest)

7.63%

ROE (Latest)

10.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 69.29 MM

NET SALES(HY)

At CNY 369.49 MM has Grown at 30.42%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

DIVIDEND PAYOUT RATIO(Y)

Highest at 84.75%

RAW MATERIAL COST(Y)

Fallen by -105% (YoY

CASH AND EQV(HY)

Highest at CNY 536.43 MM

DIVIDEND PER SHARE(HY)

Highest at CNY 6.28

-12What is not working for the Company

INTEREST(HY)

At CNY 0.02 MM has Grown at 119.19%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.05 times

NET SALES(Q)

At CNY 175.07 MM has Fallen at -8.08%

Here's what is working for Nanning Baling Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 69.29 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 536.43 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at CNY 6.28

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 84.75%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -105% (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 Nanning Baling Technology Co., Ltd.

Interest

At CNY 0.02 MM has Grown at 119.19%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 175.07 MM has Fallen at -8.08%

over average net sales of the previous four periods of CNY 190.46 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 3.05 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio