Qianjiang Water Resources Development Co., Ltd. (600283) 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

Qianjiang Water Resources Development Co., Ltd.

Why is Qianjiang Water Resources Development 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 14.32% and Operating profit at 16.16% 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 10.55% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 14.32% and Operating profit at 16.16% over the last 5 years

Flat results in Sep 25

INTEREST(Q) At CNY 21.12 MM has Grown at 10%
INTEREST COVERAGE RATIO(Q) Lowest at 623.12
OPERATING PROFIT(Q) Lowest at CNY 131.6 MM

With ROE of 9.89%, it has a very expensive valuation with a 1.73 Price to Book Value

Over the past year, while the stock has generated a return of -5.74%, its profits have risen by 8.1%
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 -5.74% 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 Other Utilities)

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

Is Qianjiang Water Resources Development Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Qianjiang Water Resources Development Co., Ltd.

-100.0%

0.18

19.62%

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)

14.32%

EBIT Growth (5y)

16.16%

EBIT to Interest (avg)

5.11

Debt to EBITDA (avg)

2.24

Net Debt to Equity (avg)

0.77

Sales to Capital Employed (avg)

0.43

Tax Ratio

23.64%

Dividend Payout Ratio

58.14%

Pledged Shares

Institutional Holding

ROCE (avg)

8.45%

ROE (avg)

10.55%

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

1.73

EV to EBIT

21.13

EV to EBITDA

10.38

EV to Capital Employed

1.41

EV to Sales

3.27

PEG Ratio

Dividend Yield

1.68%

ROCE (Latest)

6.69%

ROE (Latest)

9.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 566.34 MM

RAW MATERIAL COST(Y)

Fallen by -14.59% (YoY

CASH AND EQV(HY)

Highest at CNY 1,884.84 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.6 times

PRE-TAX PROFIT(Q)

Highest at CNY 129.86 MM

-8What is not working for the Company

INTEREST(Q)

At CNY 21.12 MM has Grown at 10%

INTEREST COVERAGE RATIO(Q)

Lowest at 623.12

OPERATING PROFIT(Q)

Lowest at CNY 131.6 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.16 times

OPERATING PROFIT MARGIN(Q)

Lowest at 21.01 %

Here's what is working for Qianjiang Water Resources Development Co., Ltd.

Operating Cash Flow

Highest at CNY 566.34 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 129.86 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 1,884.84 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.6 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -14.59% (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 Qianjiang Water Resources Development Co., Ltd.

Interest

At CNY 21.12 MM has Grown at 10%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 623.12

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 131.6 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)

Operating Profit Margin

Lowest at 21.01 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 3.16 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio