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

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 21.76% and Operating profit at -8.10% 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 21.76% and Operating profit at -8.10% over the last 5 years

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

DEBT-EQUITY RATIO (HY) Highest at 140.88 %
DEBTORS TURNOVER RATIO(HY) Lowest at 4.1 times
INTEREST(Q) Highest at CNY 58.97 MM

With ROE of 2.36%, it has a expensive valuation with a 1.62 Price to Book Value

Over the past year, while the stock has generated a return of 35.47%, its profits have fallen by -69.8%
At the current price, the company has a high dividend yield of 0.2

Market Beating Performance

The stock has generated a return of 35.47% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%

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, Medium Return

Absolute

Risk Adjusted

Volatility

Shanghai QiFan Cable Co., Ltd.

64.0%

0.83

33.77%

China Shanghai Composite

23.91%

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)

15.04%

EBIT Growth (5y)

-9.47%

EBIT to Interest (avg)

5.07

Debt to EBITDA (avg)

6.69

Net Debt to Equity (avg)

1.26

Sales to Capital Employed (avg)

1.88

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

14.51%

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

2.21

EV to EBIT

40.35

EV to EBITDA

28.73

EV to Capital Employed

1.51

EV to Sales

0.77

PEG Ratio

1.06

Dividend Yield

0.15%

ROCE (Latest)

3.73%

ROE (Latest)

4.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bullish

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

13What is working for the Company

CASH AND EQV(HY)

Highest at CNY 3,793.79 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 4.62 times

PRE-TAX PROFIT(Q)

Highest at CNY 131.23 MM

NET PROFIT(Q)

Highest at CNY 95.7 MM

EPS(Q)

Highest at CNY 0.23

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 89.65 MM

INTEREST(Q)

At CNY 58.68 MM has Grown at 18.03%

RAW MATERIAL COST(Y)

Grown by 14.05% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 141.98 %

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

Pre-Tax Profit

At CNY 131.23 MM has Grown at 144.01%

over average net sales of the previous four periods of CNY 53.78 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 95.7 MM has Grown at 117.15%

over average net sales of the previous four periods of CNY 44.07 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 131.23 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 95.7 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.23

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 3,793.79 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 4.62 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Shanghai QiFan Cable Co., Ltd.

Operating Cash Flow

Lowest at CNY 89.65 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

At CNY 58.68 MM has Grown at 18.03%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 141.98 %

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

Raw Material Cost

Grown by 14.05% (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