Why is Shenzhen Cheng Chung Design Co., Ltd. ?
1
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)
2
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
3
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%
4
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 10.10%, 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
How much should you buy?
- 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.
43.78%
1.54
46.84%
China Shanghai Composite
3.23%
1.20
14.07%
Quality key factors
Factor
Value
Sales Growth (5y)
-4.60%
EBIT Growth (5y)
28.00%
EBIT to Interest (avg)
4.44
Debt to EBITDA (avg)
0.15
Net Debt to Equity (avg)
-0.16
Sales to Capital Employed (avg)
0.77
Tax Ratio
20.25%
Dividend Payout Ratio
66.04%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.70%
ROE (avg)
1.70%
Valuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
2.38
EV to EBIT
15.79
EV to EBITDA
12.86
EV to Capital Employed
2.76
EV to Sales
2.12
PEG Ratio
0.19
Dividend Yield
2.75%
ROCE (Latest)
17.45%
ROE (Latest)
11.33%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
19What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 2.44 times
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by -6.92% (YoY
NET SALES(Q)
Highest at CNY 519.48 MM
OPERATING PROFIT(Q)
Highest at CNY 112.12 MM
PRE-TAX PROFIT(Q)
Highest at CNY 88.84 MM
NET PROFIT(Q)
Highest at CNY 72.07 MM
EPS(Q)
Highest at CNY 0.24
-4What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 286.49 MM
Here's what is working for Shenzhen Cheng Chung Design Co., Ltd.
Net Sales
At CNY 519.48 MM has Grown at 39.81%
over average net sales of the previous four periods of CNY 371.55 MMMOJO Watch
Near term sales trend is very positive
Net Sales (CNY MM)
Debtors Turnover Ratio
Highest at 2.44 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Net Sales
Highest at CNY 519.48 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Operating Profit
Highest at CNY 112.12 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CNY MM)
Pre-Tax Profit
Highest at CNY 88.84 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Pre-Tax Profit
At CNY 88.84 MM has Grown at 69.73%
over average net sales of the previous four periods of CNY 52.34 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 72.07 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Net Profit
At CNY 72.07 MM has Grown at 75.29%
over average net sales of the previous four periods of CNY 41.11 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.24
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Raw Material Cost
Fallen by -6.92% (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.
Operating Cash Flow
Lowest at CNY 286.49 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
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