Sichuan Changhong Electric Co., Ltd. (600839) 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

Sichuan Changhong Electric Co., Ltd.

Why is Sichuan Changhong Electric 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 4.67% and Operating profit at 20.42% 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 9.31% signifying low profitability per unit of shareholders funds

Flat results in Mar 25

OPERATING CASH FLOW(Y) Lowest at CNY 2,855.72 MM
INTEREST(Q) At CNY 139.42 MM has Grown at 179.45%
INTEREST COVERAGE RATIO(Q) Lowest at 283.85

With ROE of 11.72%, it has a attractive valuation with a 3.31 Price to Book Value

Over the past year, while the stock has generated a return of -18.64%, its profits have risen by 7.4% ; the PEG ratio of the company is 3.8
At the current price, the company has a high dividend yield of 0.9

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 14.77% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -18.64% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sichuan Changhong Electric Co., Ltd. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

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

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

Is Sichuan Changhong Electric Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sichuan Changhong Electric Co., Ltd.

-18.64%

2.20

43.85%

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)

4.67%

EBIT Growth (5y)

20.42%

EBIT to Interest (avg)

2.63

Debt to EBITDA (avg)

6.60

Net Debt to Equity (avg)

2.76

Sales to Capital Employed (avg)

1.87

Tax Ratio

12.60%

Dividend Payout Ratio

65.62%

Pledged Shares

Institutional Holding

ROCE (avg)

3.97%

ROE (avg)

9.31%

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

3.31

EV to EBIT

40.31

EV to EBITDA

21.02

EV to Capital Employed

2.34

EV to Sales

0.56

PEG Ratio

3.82

Dividend Yield

0.93%

ROCE (Latest)

5.81%

ROE (Latest)

11.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

8What is working for the Company

NET PROFIT(HY)

Higher at CNY 454.63 MM

ROCE(HY)

Highest at 5.96%

CASH AND EQV(HY)

Highest at CNY 54,677.17 MM

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 2,855.72 MM

INTEREST(Q)

At CNY 139.42 MM has Grown at 179.45%

INTEREST COVERAGE RATIO(Q)

Lowest at 283.85

RAW MATERIAL COST(Y)

Grown by 9.69% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 395.76 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.48 %

Here's what is working for Sichuan Changhong Electric Co., Ltd.

Net Profit

Higher at CNY 454.63 MM

than preceding 12 month period ended Mar 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Net Profit

At CNY 454.63 MM has Grown at 63.83%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 54,677.17 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Sichuan Changhong Electric Co., Ltd.

Operating Cash Flow

Lowest at CNY 2,855.72 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 139.42 MM has Grown at 179.45%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 283.85

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 395.76 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.48 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 9.69% (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