Nanxing Machinery Co., Ltd. (002757) 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

Nanxing Machinery Co., Ltd.

Why is Nanxing Machinery Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 7.17% and Operating profit at -12.88% over the last 5 years

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at CNY 506.39 MM
INVENTORY TURNOVER RATIO(HY) Highest at 8.71 times
RAW MATERIAL COST(Y) Fallen by -12.34% (YoY)

With ROE of 6.05%, it has a fair valuation with a 2.77 Price to Book Value

Over the past year, while the stock has generated a return of 22.90%, its profits have fallen by -14.8%
At the current price, the company has a high dividend yield of 1.7

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nanxing Machinery Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Nanxing Machinery Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nanxing Machinery Co., Ltd.

17.57%

1.19

61.02%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.17%

EBIT Growth (5y)

-12.88%

EBIT to Interest (avg)

15.95

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

1.21

Tax Ratio

26.72%

Dividend Payout Ratio

86.16%

Pledged Shares

Institutional Holding

ROCE (avg)

13.98%

ROE (avg)

11.90%

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

2.77

EV to EBIT

36.17

EV to EBITDA

19.84

EV to Capital Employed

3.16

EV to Sales

1.57

PEG Ratio

Dividend Yield

1.68%

ROCE (Latest)

8.75%

ROE (Latest)

6.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 506.39 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 8.71 times

RAW MATERIAL COST(Y)

Fallen by -12.34% (YoY

CASH AND EQV(HY)

Highest at CNY 1,990.47 MM

DEBT-EQUITY RATIO (HY)

Lowest at -11.45 %

NET PROFIT(Q)

Highest at CNY 43.43 MM

EPS(Q)

Highest at CNY 0.15

-3What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.91 times

OPERATING PROFIT(Q)

Lowest at CNY 49.15 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.89 %

Here's what is working for Nanxing Machinery Co., Ltd.

Inventory Turnover Ratio

Highest at 8.71 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Cash Flow

Highest at CNY 506.39 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

Highest at CNY 43.43 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.15

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 1,990.47 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -11.45 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -12.34% (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 Nanxing Machinery Co., Ltd.

Operating Profit

Lowest at CNY 49.15 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.89 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 4.91 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio