Wuxi Chipown Micro-electronics Ltd. (688508) 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

Wuxi Chipown Micro-electronics Ltd.

Why is Wuxi Chipown Micro-electronics Ltd. ?

Poor Management Efficiency with a low ROCE of 11.04%

The company has been able to generate a Return on Capital Employed (avg) of 11.04% 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 13.46% and Operating profit at -22.84% over the last 5 years

INVENTORY TURNOVER RATIO(HY) Lowest at 2.17 times
NET SALES(Q) Lowest at CNY 241.33 MM
OPERATING PROFIT(Q) Lowest at CNY -8.99 MM

With ROE of 4.34%, it has a attractive valuation with a 3.55 Price to Book Value

Over the past year, while the stock has generated a return of 17.89%, its profits have risen by 81.2% ; the PEG ratio of the company is 1
At the current price, the company has a high dividend yield of 0.5

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wuxi Chipown Micro-electronics Ltd. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

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

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

Is Wuxi Chipown Micro-electronics Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wuxi Chipown Micro-electronics Ltd.

18.54%

1.93

45.32%

China Shanghai Composite

15.17%

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)

13.46%

EBIT Growth (5y)

-22.84%

EBIT to Interest (avg)

51.20

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.55

Sales to Capital Employed (avg)

0.34

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

45.98%

Pledged Shares

Institutional Holding

ROCE (avg)

11.04%

ROE (avg)

6.52%

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

3.55

EV to EBIT

105.98

EV to EBITDA

71.51

EV to Capital Employed

7.21

EV to Sales

6.69

PEG Ratio

1.01

Dividend Yield

0.49%

ROCE (Latest)

6.80%

ROE (Latest)

4.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

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

7What is working for the Company

NET SALES(9M)

At CNY 877.35 MM has Grown at 24.15%

ROCE(HY)

Highest at 8.2%

RAW MATERIAL COST(Y)

Fallen by -5.04% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -68.02 %

EPS(Q)

Highest at CNY 0.67

-12What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.17 times

NET SALES(Q)

Lowest at CNY 241.33 MM

OPERATING PROFIT(Q)

Lowest at CNY -8.99 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.73 %

PRE-TAX PROFIT(Q)

Lowest at CNY 6.67 MM

NET PROFIT(Q)

Lowest at CNY 6.23 MM

Here's what is working for Wuxi Chipown Micro-electronics Ltd.

EPS

Highest at CNY 0.67

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at -68.02 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -5.04% (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 Wuxi Chipown Micro-electronics Ltd.

Pre-Tax Profit

At CNY 6.67 MM has Fallen at -65.05%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 6.23 MM has Fallen at -71.22%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 241.33 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -8.99 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -3.73 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 6.67 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 6.23 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 2.17 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio