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

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 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

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)

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

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 Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sichuan Changhong Electric Co., Ltd.

-26.96%

2.95

36.23%

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)

1.47%

EBIT Growth (5y)

-3.11%

EBIT to Interest (avg)

2.63

Debt to EBITDA (avg)

6.60

Net Debt to Equity (avg)

2.76

Sales to Capital Employed (avg)

1.90

Tax Ratio

12.60%

Dividend Payout Ratio

27.99%

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

2.05

EV to EBIT

51.13

EV to EBITDA

22.95

EV to Capital Employed

1.58

EV to Sales

0.40

PEG Ratio

Dividend Yield

0.73%

ROCE (Latest)

3.09%

ROE (Latest)

6.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

3What is working for the Company

CASH AND EQV(HY)

Highest at CNY 58,738.5 MM

DEBT-EQUITY RATIO (HY)

Lowest at 83.08 %

DEBTORS TURNOVER RATIO(HY)

Highest at 5.69 times

-21What is not working for the Company

NET PROFIT(Q)

At CNY 69.25 MM has Fallen at -52.65%

INTEREST(Q)

At CNY 131.25 MM has Grown at 119.22%

INTEREST COVERAGE RATIO(Q)

Lowest at 205.72

OPERATING PROFIT MARGIN(Q)

Lowest at 0.99 %

RAW MATERIAL COST(Y)

Grown by 12.5% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.28 times

OPERATING PROFIT(Q)

Lowest at CNY 270 MM

PRE-TAX PROFIT(Q)

Fallen at -34.55%

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

Cash and Eqv

Highest at CNY 58,738.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 83.08 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 5.69 times

in the last five Semi-Annual periods

MOJO 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.

Net Profit

At CNY 69.25 MM has Fallen at -52.65%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 131.25 MM has Grown at 119.22%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 205.72

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 0.99 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at CNY 270 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Fallen at -34.55%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 4.28 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 12.5% (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