Ningbo Cixing Co., Ltd. (300307) 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

Ningbo Cixing Co., Ltd.

Why is Ningbo Cixing Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.97%

The company has been able to generate a Return on Capital Employed (avg) of 1.97% 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 8.53% and Operating profit at 18.92% over the last 5 years

The company has declared negative results for the last 2 consecutive quarters

ROCE(HY) Lowest at 2.96%
INVENTORY TURNOVER RATIO(HY) Lowest at 1.15 times
INTEREST(Q) At CNY 1.6 MM has Grown at 49.48%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 25.05% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -15.10% returns

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 Industrial Manufacturing)

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

Is Ningbo Cixing Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Ningbo Cixing Co., Ltd.

-100.0%

0.73

29.49%

China Shanghai Composite

24.7%

1.93

12.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.53%

EBIT Growth (5y)

18.92%

EBIT to Interest (avg)

2.70

Debt to EBITDA (avg)

1.04

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

0.54

Tax Ratio

13.39%

Dividend Payout Ratio

55.54%

Pledged Shares

Institutional Holding

ROCE (avg)

1.97%

ROE (avg)

3.77%

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

1.73

EV to EBIT

40.23

EV to EBITDA

23.89

EV to Capital Employed

1.72

EV to Sales

2.79

PEG Ratio

Dividend Yield

2.78%

ROCE (Latest)

4.29%

ROE (Latest)

2.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 3.87 times

-39What is not working for the Company

ROCE(HY)

Lowest at 2.96%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.15 times

INTEREST(Q)

At CNY 1.6 MM has Grown at 49.48%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,253.39

NET PROFIT(Q)

At CNY 16.02 MM has Fallen at -39.49%

RAW MATERIAL COST(Y)

Grown by 6.05% (YoY

CASH AND EQV(HY)

Lowest at CNY 817.95 MM

NET SALES(Q)

Lowest at CNY 383.06 MM

Here's what is working for Ningbo Cixing Co., Ltd.

Debtors Turnover Ratio

Highest at 3.87 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 Ningbo Cixing Co., Ltd.

Net Sales

At CNY 383.06 MM has Fallen at -24.39%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 1.6 MM has Grown at 49.48%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,253.39

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 16.02 MM has Fallen at -39.49%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 1.15 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at CNY 383.06 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 817.95 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 6.05% (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