Ningxia Western Venture Industrial Co., Ltd. (000557) 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

Ningxia Western Venture Industrial Co., Ltd.

Why is Ningxia Western Venture Industrial Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 6.78%

The company has been able to generate a Return on Capital Employed (avg) of 6.78% 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 10.17% and Operating profit at -2.01% over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 376.05 MM
RAW MATERIAL COST(Y) Grown by 85.14% (YoY)
DEBT-EQUITY RATIO (HY) Highest at -30.96 %

With ROE of 6.29%, it has a expensive valuation with a 1.19 Price to Book Value

Over the past year, while the stock has generated a return of -19.50%, its profits have risen by 48.1% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 1

Below par performance in long term as well as near term

Along with generating -19.50% 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 Transport Services)

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

Is Ningxia Western Venture Industrial Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ningxia Western Venture Industrial Co., Ltd.

-17.89%

0.30

25.94%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.17%

EBIT Growth (5y)

-2.01%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

0.24

Tax Ratio

19.51%

Dividend Payout Ratio

27.73%

Pledged Shares

Institutional Holding

ROCE (avg)

6.78%

ROE (avg)

4.09%

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

1.19

EV to EBIT

21.19

EV to EBITDA

12.54

EV to Capital Employed

1.29

EV to Sales

4.02

PEG Ratio

0.39

Dividend Yield

0.97%

ROCE (Latest)

6.08%

ROE (Latest)

6.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly 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

7What is working for the Company

NET PROFIT(HY)

At CNY 228.91 MM has Grown at 63.7%

ROCE(HY)

Highest at 5.36%

DEBTORS TURNOVER RATIO(HY)

Highest at 20.06 times

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 376.05 MM

RAW MATERIAL COST(Y)

Grown by 85.14% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -30.96 %

OPERATING PROFIT(Q)

Lowest at CNY -8.35 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -2.43 %

PRE-TAX PROFIT(Q)

Lowest at CNY 0.25 MM

NET PROFIT(Q)

Lowest at CNY 0.13 MM

EPS(Q)

Lowest at CNY 0

Here's what is working for Ningxia Western Venture Industrial Co., Ltd.

Debtors Turnover Ratio

Highest at 20.06 times and Grown

In each half year 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 Ningxia Western Venture Industrial Co., Ltd.

Pre-Tax Profit

At CNY 0.25 MM has Fallen at -99.78%

over average net sales of the previous four periods of CNY 113.17 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 0.13 MM has Fallen at -99.87%

over average net sales of the previous four periods of CNY 99.75 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 376.05 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY -8.35 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -2.43 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 0.25 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 0.13 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at -30.96 %

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

Raw Material Cost

Grown by 85.14% (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