Ningbo Xusheng Group Co., Ltd. (603305) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ningbo Xusheng Group Co., Ltd.

Why is Ningbo Xusheng Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 28.00% and Operating profit at 5.07% over the last 5 years

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

INTEREST(HY) At CNY 68.16 MM has Grown at 242.71%
NET PROFIT(HY) At CNY 180.55 MM has Grown at -41.79%
NET SALES(HY) At CNY 2,150.45 MM has Grown at -9.43%

With ROE of 4.95%, it has a expensive valuation with a 2.51 Price to Book Value

Over the past year, while the stock has generated a return of -9.83%, its profits have fallen by -43.5%
At the current price, the company has a high dividend yield of 2.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.83% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Auto Components & Equipments)

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

Is Ningbo Xusheng Group Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ningbo Xusheng Group Co., Ltd.

-9.83%

0.18

47.95%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

28.00%

EBIT Growth (5y)

5.07%

EBIT to Interest (avg)

28.69

Debt to EBITDA (avg)

0.84

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

0.45

Tax Ratio

14.52%

Dividend Payout Ratio

85.20%

Pledged Shares

Institutional Holding

ROCE (avg)

10.49%

ROE (avg)

10.24%

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

2.51

EV to EBIT

51.42

EV to EBITDA

22.34

EV to Capital Employed

2.14

EV to Sales

4.42

PEG Ratio

Dividend Yield

2.11%

ROCE (Latest)

4.15%

ROE (Latest)

4.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,111.76 MM

CASH AND EQV(HY)

Highest at CNY 8,021.2 MM

-26What is not working for the Company

INTEREST(HY)

At CNY 68.16 MM has Grown at 242.71%

NET PROFIT(HY)

At CNY 180.55 MM has Grown at -41.79%

NET SALES(HY)

At CNY 2,150.45 MM has Grown at -9.43%

ROCE(HY)

Lowest at 5.3%

INTEREST COVERAGE RATIO(Q)

Lowest at 280.18

RAW MATERIAL COST(Y)

Grown by 7.4% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 22.85 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.26%

OPERATING PROFIT(Q)

Lowest at CNY 99.49 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.65 %

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

Operating Cash Flow

Highest at CNY 1,111.76 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 8,021.2 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 Xusheng Group Co., Ltd.

Interest

At CNY 68.16 MM has Grown at 242.71%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 180.55 MM has Grown at -41.79%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 280.18

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At CNY 2,150.45 MM has Grown at -9.43%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 99.49 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 9.65 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 22.85 %

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 3.26%

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 7.4% (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