Shenzhen Cheng Chung Design Co., Ltd. (002811) 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

Shenzhen Cheng Chung Design Co., Ltd.

Why is Shenzhen Cheng Chung Design Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.04%

The company has been able to generate a Return on Capital Employed (avg) of 4.04% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -4.60% and Operating profit at 28.00% over the last 5 years

Positive results in Mar 26

NET PROFIT(HY) At CNY 53.46 MM has Grown at 114.58%
NET SALES(HY) At CNY 766.47 MM has Grown at 21.38%
ROCE(HY) Highest at 12.1%

With ROE of 11.33%, it has a fair valuation with a 1.90 Price to Book Value

Over the past year, while the stock has generated a return of 16.70%, its profits have risen by 108.4% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 3.4

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Cheng Chung Design Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Shenzhen Cheng Chung Design Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Cheng Chung Design Co., Ltd.

17.02%

1.69

46.62%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.60%

EBIT Growth (5y)

28.00%

EBIT to Interest (avg)

0.39

Debt to EBITDA (avg)

0.15

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

0.77

Tax Ratio

23.26%

Dividend Payout Ratio

66.04%

Pledged Shares

Institutional Holding

ROCE (avg)

4.04%

ROE (avg)

1.70%

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

1.90

EV to EBIT

12.30

EV to EBITDA

10.02

EV to Capital Employed

2.15

EV to Sales

1.65

PEG Ratio

0.16

Dividend Yield

3.44%

ROCE (Latest)

17.45%

ROE (Latest)

11.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

14What is working for the Company

NET PROFIT(HY)

At CNY 53.46 MM has Grown at 114.58%

NET SALES(HY)

At CNY 766.47 MM has Grown at 21.38%

ROCE(HY)

Highest at 12.1%

DEBTORS TURNOVER RATIO(HY)

Highest at 2.26 times

RAW MATERIAL COST(Y)

Fallen by -15.34% (YoY

-6What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 5 times

INTEREST(Q)

At CNY 1.96 MM has Grown at 20.21%

Here's what is working for Shenzhen Cheng Chung Design Co., Ltd.

Net Profit

At CNY 53.46 MM has Grown at 114.58%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 766.47 MM has Grown at 21.38%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 2.26 times and Grown

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

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -15.34% (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 Shenzhen Cheng Chung Design Co., Ltd.

Interest

At CNY 1.96 MM has Grown at 20.21%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 5 times 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