Norinco International Cooperation Ltd. (000065) 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

Norinco International Cooperation Ltd.

Why is Norinco International Cooperation Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 6.31% and Operating profit at 4.42% over the last 5 years

Negative results in Jun 25

ROCE(HY) Lowest at 8.65%
INVENTORY TURNOVER RATIO(HY) Lowest at 9.88%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.45%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.18% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -4.13% 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 Trading & Distributors)

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

Is Norinco International Cooperation Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Norinco International Cooperation Ltd.

15.56%

0.00

39.89%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.31%

EBIT Growth (5y)

4.42%

EBIT to Interest (avg)

4.73

Debt to EBITDA (avg)

2.36

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

1.19

Tax Ratio

13.19%

Dividend Payout Ratio

14.12%

Pledged Shares

Institutional Holding

ROCE (avg)

8.67%

ROE (avg)

11.26%

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

0.97

EV to EBIT

13.19

EV to EBITDA

8.92

EV to Capital Employed

0.98

EV to Sales

0.76

PEG Ratio

Dividend Yield

1.37%

ROCE (Latest)

7.42%

ROE (Latest)

7.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,186.07 MM

INTEREST COVERAGE RATIO(Q)

Highest at 987.81

RAW MATERIAL COST(Y)

Fallen by -25.8% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 18.81 %

-27What is not working for the Company

ROCE(HY)

Lowest at 8.65%

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.88%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.45%

NET SALES(Q)

Lowest at CNY 3,079.16 MM

PRE-TAX PROFIT(Q)

Lowest at CNY 188.95 MM

NET PROFIT(Q)

Lowest at CNY 131.96 MM

EPS(Q)

Lowest at CNY 0.11

Here's what is working for Norinco International Cooperation Ltd.

Interest Coverage Ratio

Highest at 987.81

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at CNY 1,186.07 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at 18.81 %

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 -25.8% (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 Norinco International Cooperation Ltd.

Net Sales

At CNY 3,079.16 MM has Fallen at -42.91%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Profit

At CNY 131.96 MM has Fallen at -52.14%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Pre-Tax Profit

At CNY 188.95 MM has Fallen at -43.94%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Sales

Lowest at CNY 3,079.16 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Pre-Tax Profit

Lowest at CNY 188.95 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 131.96 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.11

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 9.88%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 2.45%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio