ScoreWhy is Sichuan Changhong Electric Co., Ltd. ?
1
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 3.60% and Operating profit at 15.23% 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
2
Flat results in Sep 25
- OPERATING CASH FLOW(Y) Lowest at CNY 3,753.67 MM
- INTEREST COVERAGE RATIO(Q) Lowest at 120.54
- RAW MATERIAL COST(Y) Grown by 5.02% (YoY)
3
With ROE of 11.72%, it has a attractive valuation with a 3.23 Price to Book Value
- Over the past year, while the stock has generated a return of -11.89%, its profits have risen by 7.4% ; the PEG ratio of the company is 3.7
- At the current price, the company has a high dividend yield of 1
4
Underperformed the market in the last 1 year
- Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -11.89% returns
Real-Time Research ReportHow 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.
-22.01%
2.95
36.23%
China Shanghai Composite
13.33%
1.58
14.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.60%
EBIT Growth (5y)
15.23%
EBIT to Interest (avg)
2.63
Debt to EBITDA (avg)
6.60
Net Debt to Equity (avg)
2.76
Sales to Capital Employed (avg)
1.88
Tax Ratio
12.60%
Dividend Payout Ratio
65.62%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.97%
ROE (avg)
9.31%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
28
Industry P/E
Price to Book Value
3.23
EV to EBIT
39.55
EV to EBITDA
20.63
EV to Capital Employed
2.30
EV to Sales
0.55
PEG Ratio
3.73
Dividend Yield
0.96%
ROCE (Latest)
5.81%
ROE (Latest)
11.72%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
ROCE(HY)
Highest at 9.21%
NET PROFIT(Q)
At CNY 73.18 MM has Grown at 104.67%
CASH AND EQV(HY)
Highest at CNY 59,359.92 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 90.03 %
INVENTORY TURNOVER RATIO(HY)
Highest at 5.11 times
DEBTORS TURNOVER RATIO(HY)
Highest at 5.64 times
EPS(Q)
Highest at CNY 0.11
-11What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 3,753.67 MM
INTEREST COVERAGE RATIO(Q)
Lowest at 120.54
RAW MATERIAL COST(Y)
Grown by 5.02% (YoY
NET SALES(Q)
Lowest at CNY 25,183.99 MM
OPERATING PROFIT(Q)
Lowest at CNY 158.6 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 0.63 %
PRE-TAX PROFIT(Q)
Lowest at CNY 203.64 MM
Here's what is working for Sichuan Changhong Electric Co., Ltd.
Net Profit
At CNY 73.18 MM has Grown at 104.67%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.11
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Cash and Eqv
Highest at CNY 59,359.92 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 90.03 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 5.11 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 5.64 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Sichuan Changhong Electric Co., Ltd.
Interest Coverage Ratio
Lowest at 120.54
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Pre-Tax Profit
At CNY 203.64 MM has Fallen at -41.16%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Operating Cash Flow
Lowest at CNY 3,753.67 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Net Sales
Lowest at CNY 25,183.99 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY 158.6 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 0.63 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CNY 203.64 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Raw Material Cost
Grown by 5.02% (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
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