Ningbo Construction Co., Ltd. (601789) 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 Construction Co., Ltd.

Why is Ningbo Construction Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 0.23% and Operating profit at -5.99% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 9.10% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 0.23% and Operating profit at -5.99% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

ROCE(HY) Lowest at 6.07%
DEBT-EQUITY RATIO (HY) Highest at 110.31 %
DEBTORS TURNOVER RATIO(HY) Lowest at 1.35 times

With ROE of 6.11%, it has a very expensive valuation with a 1.26 Price to Book Value

Over the past year, while the stock has generated a return of -26.26%, its profits have fallen by -2.2%
At the current price, the company has a high dividend yield of 1.7

Below par performance in long term as well as near term

Along with generating -26.26% 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 Construction)

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

Is Ningbo Construction Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Ningbo Construction Co., Ltd.

-12.42%

0.87

35.20%

China Shanghai Composite

13.33%

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)

0.23%

EBIT Growth (5y)

-5.99%

EBIT to Interest (avg)

2.77

Debt to EBITDA (avg)

5.21

Net Debt to Equity (avg)

0.97

Sales to Capital Employed (avg)

1.69

Tax Ratio

18.12%

Dividend Payout Ratio

35.25%

Pledged Shares

Institutional Holding

ROCE (avg)

7.15%

ROE (avg)

9.10%

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

1.26

EV to EBIT

20.91

EV to EBITDA

15.11

EV to Capital Employed

1.15

EV to Sales

0.50

PEG Ratio

Dividend Yield

1.72%

ROCE (Latest)

5.50%

ROE (Latest)

6.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

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

1What is working for the Company

CASH AND EQV(HY)

Highest at CNY 10,385.83 MM

-15What is not working for the Company

ROCE(HY)

Lowest at 6.07%

DEBT-EQUITY RATIO (HY)

Highest at 110.31 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.35 times

NET SALES(Q)

At CNY 4,401.92 MM has Fallen at -12.75%

OPERATING PROFIT(Q)

Lowest at CNY 114.94 MM

RAW MATERIAL COST(Y)

Grown by 14.04% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 19.37 times

NET PROFIT(Q)

Lowest at CNY 52.08 MM

EPS(Q)

Lowest at CNY 0.05

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

Cash and Eqv

Highest at CNY 10,385.83 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 Ningbo Construction Co., Ltd.

Net Sales

At CNY 4,401.92 MM has Fallen at -12.75%

over average net sales of the previous four periods of CNY 5,044.93 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 114.94 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Debt-Equity Ratio

Highest at 110.31 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 1.35 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Profit

Lowest at CNY 52.08 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

At CNY 52.08 MM has Fallen at -29.32%

over average net sales of the previous four periods of CNY 73.69 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.05

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 19.37 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 14.04% (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