PNC Process Systems Co., Ltd. (603690) 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

PNC Process Systems Co., Ltd.

Why is PNC Process Systems 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 24.01% and Operating profit at -196.22% 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 4.59% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 24.01% and Operating profit at -196.22% over the last 5 years

With a fall in Net Sales of -31.74%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 2 consecutive quarters
INTEREST(HY) At CNY 112.51 MM has Grown at 16.18%
NET SALES(Q) At CNY 758.88 MM has Fallen at -31.74%
PRE-TAX PROFIT(Q) At CNY 31.31 MM has Fallen at -76.72%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 2.07%, its profits have fallen by -168.8%
At the current price, the company has a high dividend yield of 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 2.07% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 PNC Process Systems Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

PNC Process Systems Co., Ltd.

28.23%

0.30

45.18%

China Shanghai Composite

21.43%

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)

12.71%

EBIT Growth (5y)

-227.76%

EBIT to Interest (avg)

3.04

Debt to EBITDA (avg)

8.69

Net Debt to Equity (avg)

1.07

Sales to Capital Employed (avg)

0.32

Tax Ratio

25.77%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.02%

ROE (avg)

4.59%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.87

EV to EBIT

-22.34

EV to EBITDA

-38.25

EV to Capital Employed

1.74

EV to Sales

5.56

PEG Ratio

Dividend Yield

0.19%

ROCE (Latest)

-7.80%

ROE (Latest)

-24.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-38What is not working for the Company

INTEREST(HY)

At CNY 167.18 MM has Grown at 50.22%

PRE-TAX PROFIT(Q)

At CNY -81.19 MM has Fallen at -282.96%

NET PROFIT(Q)

At CNY -78.85 MM has Fallen at -152.41%

ROCE(HY)

Lowest at -21.14%

DEBT-EQUITY RATIO (HY)

Highest at 153.03 %

RAW MATERIAL COST(Y)

Grown by 20.79% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.67 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.9 times

NET SALES(Q)

Fallen at -14.7%

Here's what is not working for PNC Process Systems Co., Ltd.

Interest

At CNY 167.18 MM has Grown at 50.22%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY -81.19 MM has Fallen at -282.96%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -78.85 MM has Fallen at -152.41%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 153.03 % 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

Net Sales

Fallen at -14.7%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 0.67 times

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 0.9 times

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 20.79% (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