Wanxiang Qianchao Co., Ltd. (000559) 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

Wanxiang Qianchao Co., Ltd.

Why is Wanxiang Qianchao Co., Ltd. ?

The company declared very negative results in Mar'26 after flat results in Dec'25

DEBTORS TURNOVER RATIO(HY) Lowest at 2.78 times
INTEREST COVERAGE RATIO(Q) Lowest at 221.42
OPERATING PROFIT(Q) Lowest at CNY 253.7 MM

With ROE of 11.32%, it has a very expensive valuation with a 5.56 Price to Book Value

Over the past year, while the stock has generated a return of 85.50%, its profits have fallen by -2.5%
At the current price, the company has a high dividend yield of 2.1

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 Auto Components & Equipments)

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

Is Wanxiang Qianchao Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wanxiang Qianchao Co., Ltd.

79.87%

2.98

59.77%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.66%

EBIT Growth (5y)

17.12%

EBIT to Interest (avg)

4.82

Debt to EBITDA (avg)

0.56

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.81

Tax Ratio

8.60%

Dividend Payout Ratio

63.86%

Pledged Shares

Institutional Holding

ROCE (avg)

7.70%

ROE (avg)

8.73%

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

5.56

EV to EBIT

53.57

EV to EBITDA

38.74

EV to Capital Employed

4.83

EV to Sales

3.98

PEG Ratio

Dividend Yield

2.14%

ROCE (Latest)

9.02%

ROE (Latest)

11.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Bullish

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

RAW MATERIAL COST(Y)

Fallen by -34.75% (YoY

CASH AND EQV(HY)

Highest at CNY 14,911.43 MM

-25What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.78 times

INTEREST COVERAGE RATIO(Q)

Lowest at 221.42

OPERATING PROFIT(Q)

Lowest at CNY 253.7 MM

DEBT-EQUITY RATIO (HY)

Highest at 19.24 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.15 times

NET SALES(Q)

Lowest at CNY 2,804.43 MM

INTEREST(Q)

Highest at CNY 114.58 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.05 %

PRE-TAX PROFIT(Q)

Lowest at CNY 256.87 MM

Here's what is working for Wanxiang Qianchao Co., Ltd.

Cash and Eqv

Highest at CNY 14,911.43 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -34.75% (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 Wanxiang Qianchao Co., Ltd.

Net Sales

At CNY 2,804.43 MM has Fallen at -16.23%

over average net sales of the previous four periods of CNY 3,347.7 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 114.58 MM has Grown at 116.74%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 221.42

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 253.7 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 2.78 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at CNY 2,804.43 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 114.58 MM

in the last five periods and Increased by 116.74% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 9.05 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 256.87 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 19.24 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 3.15 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio