Visual China Group Co., Ltd. (000681) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Visual China Group Co., Ltd.

Why is Visual China Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.05%

The company has been able to generate a Return on Capital Employed (avg) of 3.05% 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 6.57% and Operating profit at -10.06% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 184.12 MM
INTEREST COVERAGE RATIO(Q) Lowest at 777.21
NET PROFIT(Q) At CNY 17.21 MM has Fallen at -42.16%

With ROE of 3.36%, it has a very expensive valuation with a 3.66 Price to Book Value

Over the past year, while the stock has generated a return of 50.78%, its profits have risen by 3.7% ; the PEG ratio of the company is 29.5
At the current price, the company has a high dividend yield of 0.1

Market Beating Performance

The stock has generated a return of 50.78% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Visual China Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Visual China Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Visual China Group Co., Ltd.

36.89%

1.39

62.34%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.57%

EBIT Growth (5y)

-10.06%

EBIT to Interest (avg)

7.65

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

0.21

Tax Ratio

13.40%

Dividend Payout Ratio

12.33%

Pledged Shares

Institutional Holding

ROCE (avg)

3.05%

ROE (avg)

3.87%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

109

Industry P/E

Price to Book Value

3.66

EV to EBIT

149.29

EV to EBITDA

99.54

EV to Capital Employed

4.00

EV to Sales

15.79

PEG Ratio

29.54

Dividend Yield

0.12%

ROCE (Latest)

2.68%

ROE (Latest)

3.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

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

2What is working for the Company

CASH AND EQV(HY)

Highest at CNY 1,097.41 MM

DEBT-EQUITY RATIO (HY)

Lowest at -11.87 %

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 184.12 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 777.21

NET PROFIT(Q)

At CNY 17.21 MM has Fallen at -42.16%

RAW MATERIAL COST(Y)

Grown by 6.67% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 17.87 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.48 %

PRE-TAX PROFIT(Q)

At CNY 17.71 MM has Fallen at -29.19%

Here's what is working for Visual China Group Co., Ltd.

Cash and Eqv

Highest at CNY 1,097.41 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -11.87 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Visual China Group Co., Ltd.

Operating Cash Flow

Lowest at CNY 184.12 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 Coverage Ratio

Lowest at 777.21

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 17.21 MM has Fallen at -42.16%

over average net sales of the previous four periods of CNY 29.75 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 17.87 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 9.48 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY 17.71 MM has Fallen at -29.19%

over average net sales of the previous four periods of CNY 25 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Raw Material Cost

Grown by 6.67% (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