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 19.99% and Operating profit at 7.52% over the last 5 years

Flat results in Sep 25

INTEREST COVERAGE RATIO(Q) Lowest at 1,040.1
RAW MATERIAL COST(Y) Grown by 16.9% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 8.34 times

With ROE of 11.36%, it has a very attractive valuation with a 1.88 Price to Book Value

Over the past year, while the stock has generated a return of -4.55%, its profits have risen by 10.5%
At the current price, the company has a high dividend yield of 1.1

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Below par performance in long term as well as near term

Along with generating -4.55% 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 hold?

Overall Portfolio exposure to Anhui Jiangnan Chemical Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

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

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

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

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Anhui Jiangnan Chemical Industry Co., Ltd.

-4.33%

0.52

33.97%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.99%

EBIT Growth (5y)

7.52%

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

22.29%

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

1.88

EV to EBIT

15.43

EV to EBITDA

10.18

EV to Capital Employed

1.68

EV to Sales

2.23

PEG Ratio

Dividend Yield

1.08%

ROCE (Latest)

10.86%

ROE (Latest)

11.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Mildly Bullish

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

2What is working for the Company

CASH AND EQV(HY)

Highest at CNY 4,924.72 MM

DEBT-EQUITY RATIO (HY)

Lowest at 23.23 %

-6What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,040.1

RAW MATERIAL COST(Y)

Grown by 16.9% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.34 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.8 times

OPERATING PROFIT(Q)

Lowest at CNY 316.73 MM

Here's what is working for Anhui Jiangnan Chemical Industry Co., Ltd.

Cash and Eqv

Highest at CNY 4,924.72 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 23.23 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

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

Interest Coverage Ratio

Lowest at 1,040.1

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 316.73 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 8.34 times

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 1.8 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 16.9% (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