Why is Qinchuan Machine Tool & Tool (Group) Corp. ?
1
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 3.49% and Operating profit at 12.50% 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 6.76% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 3.49% and Operating profit at 12.50% over the last 5 years
3
Flat results in Mar 25
- DEBTORS TURNOVER RATIO(HY) Lowest at 2.13%
4
With ROE of 1.41%, it has a fair valuation with a 2.92 Price to Book Value
- Over the past year, while the stock has generated a return of 32.43%, its profits have risen by 83.8% ; the PEG ratio of the company is 7.8
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 Qinchuan Machine Tool & Tool (Group) Corp. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Qinchuan Machine Tool & Tool (Group) Corp.
26.32%
1.42
50.71%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
3.49%
EBIT Growth (5y)
12.50%
EBIT to Interest (avg)
0.08
Debt to EBITDA (avg)
1.95
Net Debt to Equity (avg)
-0.01
Sales to Capital Employed (avg)
0.61
Tax Ratio
13.79%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.17%
ROE (avg)
6.76%
Valuation Key Factors 
Factor
Value
P/E Ratio
207
Industry P/E
Price to Book Value
2.92
EV to EBIT
-149.78
EV to EBITDA
107.93
EV to Capital Employed
2.95
EV to Sales
3.61
PEG Ratio
7.83
Dividend Yield
NA
ROCE (Latest)
-1.97%
ROE (Latest)
1.41%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
17What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 309.16 MM
RAW MATERIAL COST(Y)
Fallen by -13.7% (YoY
NET SALES(Q)
Highest at CNY 1,031.55 MM
NET PROFIT(Q)
Highest at CNY 27.29 MM
EPS(Q)
Highest at CNY 0.03
-1What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.13%
Here's what is working for Qinchuan Machine Tool & Tool (Group) Corp.
Operating Cash Flow
Highest at CNY 309.16 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Sales
Highest at CNY 1,031.55 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Net Profit
Highest at CNY 27.29 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.03
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Raw Material Cost
Fallen by -13.7% (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 Qinchuan Machine Tool & Tool (Group) Corp.
Debtors Turnover Ratio
Lowest at 2.13%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






