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Wencan Group Co. Ltd.

  • Market Cap: Mid Cap
  • Industry: Auto Components & Equipments
  • ISIN: CNE1000031J6
CNY
20.35
-0.03 (-0.15%)

Dec 04

SHG

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

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Comparison
Company
Score
Quality
Valuation
Financial
Technical
Wencan Group Co. Ltd.
Why is Wencan Group 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 32.96% and Operating profit at 5.09% 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 3.87% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 32.96% and Operating profit at 5.09% over the last 5 years
3
With a fall in Net Profit of -34.94%, the company declared Very Negative results in Jun 25
  • The company has declared negative results for the last 2 consecutive quarters
  • OPERATING CASH FLOW(Y) Lowest at CNY 167.51 MM
  • ROCE(HY) Lowest at 1.23%
  • INTEREST(Q) At CNY 28.28 MM has Grown at 21.9%
4
With ROE of 1.08%, it has a expensive valuation with a 1.34 Price to Book Value
  • Over the past year, while the stock has generated a return of -23.58%, its profits have fallen by -60.8%
  • At the current price, the company has a high dividend yield of 1.4
5
Consistent Underperformance against the benchmark over the last 3 years
  • Along with generating -23.58% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
stock-recommendationReal-Time Research Report
Verdict Report
How much should you sell?
  1. 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 Wencan Group Co. Ltd. for you?

Medium Risk, Low Return

Absolute
Risk Adjusted
Volatility
Wencan Group Co. Ltd.
-26.59%
-1.02
30.31%
China Shanghai Composite
15.19%
1.01
14.58%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors
Factor
Value
Sales Growth (5y)
32.96%
EBIT Growth (5y)
5.09%
EBIT to Interest (avg)
2.46
Debt to EBITDA (avg)
2.59
Net Debt to Equity (avg)
0.39
Sales to Capital Employed (avg)
0.92
Tax Ratio
35.00%
Dividend Payout Ratio
81.99%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.60%
ROE (avg)
3.87%
stock-recommendationValuation
Valuation Scorecard stock-summary
stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary
Factor
Value
P/E Ratio
125
Industry P/E
Price to Book Value
1.34
EV to EBIT
60.38
EV to EBITDA
9.98
EV to Capital Employed
1.24
EV to Sales
1.28
PEG Ratio
NA
Dividend Yield
1.37%
ROCE (Latest)
2.06%
ROE (Latest)
1.08%
stock-recommendationTechnicals
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Sideways
Moving Averages
Bearish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend
Financial Trend Scorecard stock-summary
stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company
Icon
NO KEY POSITIVE TRIGGERS
-18What is not working for the Company
OPERATING CASH FLOW(Y)

Lowest at CNY 167.51 MM

ROCE(HY)

Lowest at 1.23%

INTEREST(Q)

At CNY 28.28 MM has Grown at 21.9%

RAW MATERIAL COST(Y)

Grown by 5.61% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.51%

NET PROFIT(Q)

At CNY 9.25 MM has Fallen at -34.94%

Here's what is not working for Wencan Group Co. Ltd.
Operating Cash Flow
Lowest at CNY 167.51 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
At CNY 28.28 MM has Grown at 21.9%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit
At CNY 9.25 MM has Fallen at -34.94%
over average net sales of the previous four periods of CNY 14.22 MM
MOJO Watch
Near term Net Profit trend is negative

Net Profit (CNY MM)

Debtors Turnover Ratio
Lowest at 3.51%
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost
Grown by 5.61% (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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