Xuchang Yuandong Drive Shaft Co., Ltd. (002406) 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

Xuchang Yuandong Drive Shaft Co., Ltd.

Why is Xuchang Yuandong Drive Shaft Co., Ltd. ?

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 201.39 MM
NET SALES(HY) At CNY 894.97 MM has Grown at 36.06%
NET PROFIT(HY) At CNY 103.36 MM has Grown at 86.14%

With ROE of 4.25%, it has a very attractive valuation with a 0.75 Price to Book Value

Over the past year, while the stock has generated a return of -3.31%, its profits have risen by 57.6% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 3

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Xuchang Yuandong Drive Shaft Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

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

Is Xuchang Yuandong Drive Shaft Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Xuchang Yuandong Drive Shaft Co., Ltd.

-8.55%

1.17

34.33%

China Shanghai Composite

19.22%

1.46

13.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.99%

EBIT Growth (5y)

-12.94%

EBIT to Interest (avg)

31.54

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

0.33

Tax Ratio

14.63%

Dividend Payout Ratio

140.25%

Pledged Shares

Institutional Holding

ROCE (avg)

6.03%

ROE (avg)

4.33%

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

0.75

EV to EBIT

11.24

EV to EBITDA

7.53

EV to Capital Employed

0.68

EV to Sales

1.36

PEG Ratio

0.30

Dividend Yield

3.05%

ROCE (Latest)

6.05%

ROE (Latest)

4.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 201.39 MM

NET SALES(HY)

At CNY 894.97 MM has Grown at 36.06%

NET PROFIT(HY)

At CNY 103.36 MM has Grown at 86.14%

ROCE(HY)

Highest at 4.23%

RAW MATERIAL COST(Y)

Fallen by -24.53% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.09 times

-4What is not working for the Company

CASH AND EQV(HY)

Lowest at CNY 2,142.98 MM

DEBT-EQUITY RATIO (HY)

Highest at -20.78 %

OPERATING PROFIT(Q)

Lowest at CNY 44.73 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.1 %

Here's what is working for Xuchang Yuandong Drive Shaft Co., Ltd.

Operating Cash Flow

Highest at CNY 201.39 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 894.97 MM has Grown at 36.06%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY 103.36 MM has Grown at 86.14%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 2.09 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -24.53% (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 Xuchang Yuandong Drive Shaft Co., Ltd.

Operating Profit

Lowest at CNY 44.73 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 11.1 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 2,142.98 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -20.78 %

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