Why is Wuxi Chipown Micro-electronics Ltd. ?
1
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)
2
Poor long term growth as Net Sales has grown by an annual rate of 17.71% and Operating profit at -10.47% over the last 5 years
- OPERATING CASH FLOW(Y) Lowest at CNY 48.81 MM
3
With ROE of 4.34%, it has a attractive valuation with a 2.32 Price to Book Value
- Over the past year, while the stock has generated a return of 29.20%, its profits have risen by 81.2% ; the PEG ratio of the company is 0.7
- At the current price, the company has a high dividend yield of 0.8
4
Market Beating Performance
- The stock has generated a return of 29.20% in the last 1 year, much higher than market (China Shanghai Composite) returns of 14.77%
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.
30.91%
1.58
48.00%
China Shanghai Composite
15.19%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
17.71%
EBIT Growth (5y)
-10.47%
EBIT to Interest (avg)
51.20
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.55
Sales to Capital Employed (avg)
0.35
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
45.98%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.04%
ROE (avg)
6.52%
Valuation Key Factors 
Factor
Value
P/E Ratio
54
Industry P/E
Price to Book Value
2.32
EV to EBIT
62.02
EV to EBITDA
41.85
EV to Capital Employed
4.22
EV to Sales
3.91
PEG Ratio
0.66
Dividend Yield
0.76%
ROCE (Latest)
6.80%
ROE (Latest)
4.34%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
20What is working for the Company
ROCE(HY)
Highest at 6.31%
RAW MATERIAL COST(Y)
Fallen by -6.42% (YoY
NET SALES(Q)
At CNY 333.89 MM has Grown at 33.94%
PRE-TAX PROFIT(Q)
Highest at CNY 40.08 MM
NET PROFIT(Q)
Highest at CNY 40.48 MM
EPS(Q)
Highest at CNY 0.39
-4What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 48.81 MM
Here's what is working for Wuxi Chipown Micro-electronics Ltd.
Net Sales
Highest at CNY 333.89 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (CNY MM)
Net Sales
At CNY 333.89 MM has Grown at 33.94%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Pre-Tax Profit
Highest at CNY 40.08 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 40.48 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.39
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Raw Material Cost
Fallen by -6.42% (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.
Operating Cash Flow
Lowest at CNY 48.81 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)






