Weiye Construction Group Co., Ltd. (300621) 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

Weiye Construction Group Co., Ltd.

Why is Weiye Construction Group 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 31.08% and Operating profit at 22.41% 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 6.35% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 31.08% and Operating profit at 22.41% over the last 5 years

The company has declared negative results for the last 6 consecutive quarters

PRE-TAX PROFIT(Q) At CNY -3.05 MM has Fallen at -116.77%
NET PROFIT(Q) At CNY -3.2 MM has Fallen at -173.24%
DEBTORS TURNOVER RATIO(HY) Lowest at 0.91%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -29.40%, its profits have fallen by -32.3%
At the current price, the company has a high dividend yield of 0.4

Below par performance in long term as well as near term

Along with generating -29.40% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Miscellaneous)

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

Is Weiye Construction Group Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Weiye Construction Group Co., Ltd.

-100.0%

0.61

40.56%

China Shanghai Composite

15.19%

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)

31.08%

EBIT Growth (5y)

22.41%

EBIT to Interest (avg)

2.75

Debt to EBITDA (avg)

0.13

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

7.33

Tax Ratio

98.21%

Dividend Payout Ratio

25.19%

Pledged Shares

Institutional Holding

ROCE (avg)

27.09%

ROE (avg)

6.35%

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

0.66

EV to EBIT

2.04

EV to EBITDA

1.63

EV to Capital Employed

0.58

EV to Sales

0.05

PEG Ratio

Dividend Yield

0.36%

ROCE (Latest)

28.56%

ROE (Latest)

1.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

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

RAW MATERIAL COST(Y)

Fallen by -128.35% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 3.25 %

-31What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -3.05 MM has Fallen at -116.77%

NET PROFIT(Q)

At CNY -3.2 MM has Fallen at -173.24%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.91%

NET SALES(Q)

Lowest at CNY 1,637.77 MM

INTEREST(Q)

Highest at CNY 54.66 MM

Here's what is working for Weiye Construction Group Co., Ltd.

Operating Profit Margin

Highest at 3.25 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -128.35% (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 Weiye Construction Group Co., Ltd.

Net Sales

At CNY 1,637.77 MM has Fallen at -57.75%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -3.05 MM has Fallen at -116.77%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -3.2 MM has Fallen at -173.24%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 54.66 MM has Grown at 37.58%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 0.91% 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 1,637.77 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 54.66 MM

in the last five periods and Increased by 37.58% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)