Anhui Jiangnan Chemical Industry Co., Ltd. (002226) 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

Anhui Jiangnan Chemical Industry Co., Ltd.

Why is Anhui Jiangnan Chemical Industry Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 18.51% and Operating profit at 5.13% over the last 5 years

The company has declared negative results for the last 2 consecutive quarters

INTEREST(HY) At CNY 86.4 MM has Grown at 33.35%
OPERATING CASH FLOW(Y) Lowest at CNY 981.56 MM
ROCE(HY) Lowest at 7.71%

Below par performance in long term as well as near term

Along with generating -8.47% 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 Other Industrial Products)

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

Is Anhui Jiangnan Chemical Industry Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Anhui Jiangnan Chemical Industry Co., Ltd.

-12.78%

0.13

36.32%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.51%

EBIT Growth (5y)

5.13%

EBIT to Interest (avg)

7.02

Debt to EBITDA (avg)

1.30

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

0.64

Tax Ratio

19.48%

Dividend Payout Ratio

30.77%

Pledged Shares

Institutional Holding

ROCE (avg)

10.74%

ROE (avg)

10.74%

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

1.40

EV to EBIT

14.24

EV to EBITDA

9.76

EV to Capital Employed

1.26

EV to Sales

1.82

PEG Ratio

Dividend Yield

1.27%

ROCE (Latest)

8.86%

ROE (Latest)

10.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly 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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-31What is not working for the Company

INTEREST(HY)

At CNY 86.4 MM has Grown at 33.35%

OPERATING CASH FLOW(Y)

Lowest at CNY 981.56 MM

ROCE(HY)

Lowest at 7.71%

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.85 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.77 times

INTEREST COVERAGE RATIO(Q)

Lowest at 412.35

RAW MATERIAL COST(Y)

Grown by 8.84% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 51.8 %

OPERATING PROFIT(Q)

Lowest at CNY 179.62 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.23 %

PRE-TAX PROFIT(Q)

Lowest at CNY 158.07 MM

NET PROFIT(Q)

Lowest at CNY 84.23 MM

Here's what is not working for Anhui Jiangnan Chemical Industry Co., Ltd.

Interest

At CNY 86.4 MM has Grown at 33.35%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 412.35

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 84.23 MM has Fallen at -43.54%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 6.85 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 1.77 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Cash Flow

Lowest at CNY 981.56 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 179.62 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.23 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 158.07 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

Fallen at -36.74%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 84.23 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 51.8 %

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

Raw Material Cost

Grown by 8.84% (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