Shanghai QiFan Cable Co., Ltd. (605222) 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

Shanghai QiFan Cable Co., Ltd.

Why is Shanghai QiFan Cable 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 23.89% and Operating profit at -10.29% 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 10.81% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 23.89% and Operating profit at -10.29% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(HY) At CNY 30.28 MM has Grown at -70.9%
ROCE(HY) Lowest at 2.57%
INVENTORY TURNOVER RATIO(HY) Lowest at 4.25%

With ROE of 2.36%, it has a fair valuation with a 1.58 Price to Book Value

Over the past year, while the stock has generated a return of -0.89%, its profits have fallen by -69.8%
At the current price, the company has a high dividend yield of 0.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.89% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shanghai QiFan Cable Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Shanghai QiFan Cable Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanghai QiFan Cable Co., Ltd.

-0.89%

0.09

26.42%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.89%

EBIT Growth (5y)

-10.29%

EBIT to Interest (avg)

5.07

Debt to EBITDA (avg)

6.69

Net Debt to Equity (avg)

1.26

Sales to Capital Employed (avg)

1.95

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

12.19%

Pledged Shares

Institutional Holding

ROCE (avg)

8.85%

ROE (avg)

10.81%

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

1.58

EV to EBIT

51.16

EV to EBITDA

30.67

EV to Capital Employed

1.25

EV to Sales

0.62

PEG Ratio

Dividend Yield

0.22%

ROCE (Latest)

2.44%

ROE (Latest)

2.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly 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

4What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 100.33 MM has Grown at 209.78%

RAW MATERIAL COST(Y)

Fallen by -15.14% (YoY

NET PROFIT(Q)

At CNY 71.79 MM has Grown at 95.77%

-19What is not working for the Company

NET PROFIT(HY)

At CNY 30.28 MM has Grown at -70.9%

ROCE(HY)

Lowest at 2.57%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.25%

INTEREST(Q)

At CNY 48.53 MM has Grown at 40.98%

NET SALES(Q)

Lowest at CNY 4,118.59 MM

Here's what is working for Shanghai QiFan Cable Co., Ltd.

Pre-Tax Profit

At CNY 100.33 MM has Grown at 209.78%

over average net sales of the previous four periods of CNY 32.39 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 71.79 MM has Grown at 95.77%

over average net sales of the previous four periods of CNY 36.67 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -15.14% (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 Shanghai QiFan Cable Co., Ltd.

Net Sales

At CNY 4,118.59 MM has Fallen at -27.49%

over average net sales of the previous four periods of CNY 5,679.65 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 48.53 MM has Grown at 40.98%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 4.25% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at CNY 4,118.59 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)