Anhui Guangxin Agrochemical Co., Ltd. (603599) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Anhui Guangxin Agrochemical Co., Ltd.

Why is Anhui Guangxin Agrochemical Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.89% and Operating profit at 6.24% over the last 5 years

The company has declared Negative results for the last 8 consecutive quarters

INTEREST(9M) At CNY 6.3 MM has Grown at inf%
OPERATING CASH FLOW(Y) Lowest at CNY 545.96 MM
ROCE(HY) Lowest at 7.3%

With ROE of 6.98%, it has a attractive valuation with a 1.08 Price to Book Value

Over the past year, while the stock has generated a return of -6.99%, its profits have fallen by -17.8%
At the current price, the company has a high dividend yield of 2.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.99% 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 Anhui Guangxin Agrochemical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

Is Anhui Guangxin Agrochemical Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Anhui Guangxin Agrochemical Co., Ltd.

-100.0%

-0.49

29.30%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.89%

EBIT Growth (5y)

6.24%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.13

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

0.46

Tax Ratio

15.40%

Dividend Payout Ratio

31.56%

Pledged Shares

Institutional Holding

ROCE (avg)

52.14%

ROE (avg)

15.64%

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

1.08

EV to EBIT

18.56

EV to EBITDA

12.30

EV to Capital Employed

1.07

EV to Sales

2.58

PEG Ratio

Dividend Yield

2.33%

ROCE (Latest)

5.79%

ROE (Latest)

6.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.62% (YoY

-19What is not working for the Company

INTEREST(9M)

At CNY 6.3 MM has Grown at inf%

OPERATING CASH FLOW(Y)

Lowest at CNY 545.96 MM

ROCE(HY)

Lowest at 7.3%

NET SALES(Q)

At CNY 976.1 MM has Fallen at -15.49%

DEBT-EQUITY RATIO (HY)

Highest at 5.46 %

OPERATING PROFIT(Q)

Lowest at CNY 114.44 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.72 %

NET PROFIT(Q)

Lowest at CNY 160.99 MM

EPS(Q)

Lowest at CNY 0.18

Here's what is working for Anhui Guangxin Agrochemical Co., Ltd.

Raw Material Cost

Fallen by 0.62% (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 Anhui Guangxin Agrochemical Co., Ltd.

Interest

At CNY 6.3 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 545.96 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)

Net Sales

At CNY 976.1 MM has Fallen at -15.49%

over average net sales of the previous four periods of CNY 1,155.01 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 976.1 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 114.44 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 11.72 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 160.99 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.18

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 5.46 %

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