China Wuyi Co., Ltd.: Leading performance but fundamentals not looking strong?

China Wuyi Co., Ltd. relative valuation is OVERVALUED and it has a fundamental analysis score of 25.

Our analysis is based on comparing China Wuyi Co., Ltd. with the following peers – Guangzhou Donghua Enterprise Co. Ltd. Class A, China Merchants Property Development Co., Ltd Class B, Beijing North Star Co. Ltd. Class A, Shanghai New Huangpu Real Estate Co. Ltd. Class A, Rongan Property Co., Ltd. Class A, Shenzhen Properties & Resources Development (Group) Co. Ltd. Class A, Gemdale Corporation Class A, Beijing Capital Development Co., Ltd. Class A, Tande Co. Ltd. Class A and Shanghai Industrial Development Co., Ltd. Class A (600393-CN, 200024-CN, 601588-CN, 600638-CN, 000517-CN, 000011-CN, 600383-CN, 600376-CN, 600665-CN and 600748-CN).

China Wuyi Co., Ltd. has shown good performance overall, both over the last one year (at 199.05%) as well as over the last month (at 30.31%). Share price performance over the last month, though has been lower than that over the last year. But China Wuyi Co., Ltd.’s stock has done better than its overall peer group whose performance was 24.16% over the last month.

Company Snapshot

  • Considering peers, relative outperformance over the last year and the last month suggest a leading position.
  • China Wuyi Co., Ltd. Class A currently trades at a higher Price/Book ratio (5.04) than its peer median (2.62).
  • The market expects faster earnings growth from 000797-CN than from its peers and also a turnaround in its current ROE.
  • 000797-CN has relatively low net profit margins while its asset efficiency is relatively high.
  • Changes in annual earnings are in line with its chosen peers but lags in terms of revenue, implying the company is cost conscious and selective about spending for growth.
  • 000797-CN‘s return on assets currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
  • The company’s relatively low gross and pre-tax margins suggest a non-differentiated product portfolio and not much control on operating costs relative to peers.
  • While 000797-CN‘s revenues have increased slower than peer median, the market currently gives the company a higher than peer median P/E ratio and may be factoring in some sort of a strategic play.
  • The company’s relatively low level of capital investment and below peer median returns on capital suggest that the company is in maintenance mode.
  • 000797-CN seems to be constrained by the current level of debt.
  • Our analysis rates China Wuyi Co., Ltd. as OVERVALUED relative to its peers.

Share Price Performance

Considering peers, relative outperformance over the last year and the last month suggest a leading position.

000797-CN‘s share price performance of 199.05% over the last 12 months is above peer median of 104.05%. The 30-day trend in its share price performance of 30.31% is also above the peer median of 24.16% suggesting that this company is a leading performer relative to its peers.

Share Price Performance

Quadrant label definitions. Hover to know more

Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

China Wuyi Co., Ltd.’s price of CNY 22.100 is greater than CapitalCube’s implied price of CNY 17.48. At this level, CapitalCube believes that China Wuyi Co., Ltd. is overvalued. Over the last 52 week period, the stock has fluctuated between CNY 6.47 and CNY 22.100.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

China Wuyi Co., Ltd. is engaged in the civil engineering and real estate development industry. Its business scope includes project contracting, survey designing, and construction decoration of civil engineering; domestic and foreign investment; international trading; import and export of construction materials and equipment; international economic and technical cooperation and services. It also provides engineering consulting, supervision and contract management; real estate development; as well as property management. The business is carried out in the domestic Fujian, Beijing, Jiangsu, Jilin and Chongjing cities, also in Hong Kong, Philippines and Africa. The company was founded in 1996 and is headquartered in Fuzhou, China.

Disclaimer

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