Xiamen CD Inc. (600153) 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

Xiamen CD Inc.

Why is Xiamen CD Inc. ?

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 12.25% and Operating profit at 3.34% 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 22.17% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 12.25% and Operating profit at 3.34% over the last 5 years

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

PRE-TAX PROFIT(Q) At CNY 923.15 MM has Fallen at -53.29%
ROCE(HY) Lowest at 3.67%
DEBT-EQUITY RATIO (HY) Highest at 300.41 %

With ROE of 10.53%, it has a fair valuation with a 0.53 Price to Book Value

Over the past year, while the stock has generated a return of -6.42%, its profits have fallen by -64.2%
At the current price, the company has a high dividend yield of 7.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.42% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Xiamen CD Inc. should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

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

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

Is Xiamen CD Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Xiamen CD Inc.

-13.29%

0.11

25.03%

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)

12.25%

EBIT Growth (5y)

3.34%

EBIT to Interest (avg)

4.05

Debt to EBITDA (avg)

8.18

Net Debt to Equity (avg)

2.31

Sales to Capital Employed (avg)

2.57

Tax Ratio

56.28%

Dividend Payout Ratio

68.90%

Pledged Shares

Institutional Holding

ROCE (avg)

8.03%

ROE (avg)

22.17%

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

0.53

EV to EBIT

12.61

EV to EBITDA

11.22

EV to Capital Employed

0.88

EV to Sales

0.27

PEG Ratio

Dividend Yield

7.22%

ROCE (Latest)

6.97%

ROE (Latest)

10.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Mildly 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

DIVIDEND PAYOUT RATIO(Y)

Highest at 188.32%

RAW MATERIAL COST(Y)

Fallen by -1.57% (YoY

-19What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 923.15 MM has Fallen at -53.29%

ROCE(HY)

Lowest at 3.67%

DEBT-EQUITY RATIO (HY)

Highest at 300.41 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.99 times

NET PROFIT(Q)

Lowest at CNY -27,403.31 MM

Here's what is working for Xiamen CD Inc.

Dividend Payout Ratio

Highest at 188.32%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -1.57% (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 Xiamen CD Inc.

Pre-Tax Profit

At CNY 923.15 MM has Fallen at -53.29%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -27,403.31 MM has Fallen at -2,402.2%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Profit

Lowest at CNY -27,403.31 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 300.41 %

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

Debtors Turnover Ratio

Lowest at 5.99 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at CNY 17.19 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income