Yuan Cheng Cable Co., Ltd. (002692) 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

Yuan Cheng Cable Co., Ltd.

Why is Yuan Cheng Cable Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.15%

The company has been able to generate a Return on Capital Employed (avg) of 3.15% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 9.38% and Operating profit at 6.76% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.63% signifying low profitability per unit of shareholders funds

With a fall in Operating Profit of -274.59%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CNY -291.23 MM
NET PROFIT(Q) At CNY -36.04 MM has Fallen at -8,228.55%
ROCE(HY) Lowest at -4.85%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -18.76%, its profits have fallen by -149.9%
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -18.76% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

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 Electronics & Appliances)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Yuan Cheng Cable Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Yuan Cheng Cable Co., Ltd.

-21.56%

0.23

42.81%

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)

9.38%

EBIT Growth (5y)

6.76%

EBIT to Interest (avg)

1.63

Debt to EBITDA (avg)

13.64

Net Debt to Equity (avg)

0.85

Sales to Capital Employed (avg)

1.70

Tax Ratio

11.65%

Dividend Payout Ratio

800.00%

Pledged Shares

Institutional Holding

ROCE (avg)

3.15%

ROE (avg)

4.63%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.68

EV to EBIT

-129.06

EV to EBITDA

307.06

EV to Capital Employed

1.34

EV to Sales

0.67

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.04%

ROE (Latest)

-3.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 2.66 times

-27What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -291.23 MM

NET PROFIT(Q)

At CNY -36.04 MM has Fallen at -8,228.55%

ROCE(HY)

Lowest at -4.85%

INTEREST(Q)

At CNY 7.34 MM has Grown at 19.92%

OPERATING PROFIT MARGIN(Q)

Lowest at -3.73 %

RAW MATERIAL COST(Y)

Grown by 69.94% (YoY

NET SALES(Q)

At CNY 991.08 MM has Fallen at -10.79%

OPERATING PROFIT(Q)

Lowest at CNY -36.98 MM

PRE-TAX PROFIT(Q)

Lowest at CNY -43.1 MM

Here's what is working for Yuan Cheng Cable Co., Ltd.

Debtors Turnover Ratio

Highest at 2.66 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Yuan Cheng Cable Co., Ltd.

Pre-Tax Profit

At CNY -43.1 MM has Fallen at -762.05%

over average net sales of the previous four periods of CNY 6.51 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -36.04 MM has Fallen at -8,228.55%

over average net sales of the previous four periods of CNY 0.44 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -291.23 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 7.34 MM has Grown at 19.92%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at -3.73 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Sales

At CNY 991.08 MM has Fallen at -10.79%

over average net sales of the previous four periods of CNY 1,110.92 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -36.98 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY -43.1 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Raw Material Cost

Grown by 69.94% (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