Yuanda China Holdings Ltd. (2789) 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

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Why is Yuanda China Holdings Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -7.02% and Operating profit at -233.78% 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 2.18% signifying low profitability per unit of shareholders funds

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 72.26%, its profits have fallen by -1269.3%

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 Construction)

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

Is Yuanda China Holdings Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Yuanda China Holdings Ltd.

72.26%

4.61

106.26%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.02%

EBIT Growth (5y)

-233.78%

EBIT to Interest (avg)

-2.41

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.70

Sales to Capital Employed (avg)

1.25

Tax Ratio

42.48%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

2.18%

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

2.04

EV to EBIT

-9.03

EV to EBITDA

-14.33

EV to Capital Employed

1.61

EV to Sales

0.61

PEG Ratio

Dividend Yield

0.57%

ROCE (Latest)

-17.84%

ROE (Latest)

-72.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bullish

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bearish

No Trend

OBV

Bullish

No Trend

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

15What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -142.17% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 8.19 times

OPERATING PROFIT(Q)

Highest at HKD 159.26 MM

OPERATING PROFIT MARGIN(Q)

Highest at 11.71 %

PRE-TAX PROFIT(Q)

Highest at HKD 206 MM

NET PROFIT(Q)

Highest at HKD 197.8 MM

EPS(Q)

Highest at HKD 0.03

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 328.75 MM

CASH AND EQV(HY)

Lowest at HKD 646.42 MM

DEBT-EQUITY RATIO (HY)

Highest at 155.7 %

Here's what is working for Yuanda China Holdings Ltd.

Pre-Tax Profit

At HKD 206 MM has Grown at 1,787.96%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (HKD MM)

Net Profit

At HKD 197.8 MM has Grown at 2,742.14%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (HKD MM)

Operating Profit

Highest at HKD 159.26 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (HKD MM)

Operating Profit Margin

Highest at 11.71 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at HKD 206 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Net Profit

Highest at HKD 197.8 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

EPS

Highest at HKD 0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Inventory Turnover Ratio

Highest at 8.19 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 -142.17% (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 Yuanda China Holdings Ltd.

Operating Cash Flow

Lowest at HKD 328.75 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 (HKD MM)

Cash and Eqv

Lowest at HKD 646.42 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 155.7 %

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