Anhui Jinhe Industrial Co., Ltd. (002597) 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 Jinhe Industrial Co., Ltd.

Why is Anhui Jinhe Industrial Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.37% and Operating profit at -28.79% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(HY) At CNY 36.58 MM has Grown at -90.59%
OPERATING CASH FLOW(Y) Lowest at CNY 686.72 MM
ROCE(HY) Lowest at 2.55%

With ROE of 2.23%, it has a fair valuation with a 1.32 Price to Book Value

Over the past year, while the stock has generated a return of -8.55%, its profits have fallen by -72.8%
At the current price, the company has a high dividend yield of 1.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -8.55% 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 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 FMCG)

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

Is Anhui Jinhe Industrial Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Anhui Jinhe Industrial Co., Ltd.

-5.93%

0.01

37.40%

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)

5.37%

EBIT Growth (5y)

-28.79%

EBIT to Interest (avg)

21.23

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

0.56

Tax Ratio

13.88%

Dividend Payout Ratio

31.75%

Pledged Shares

Institutional Holding

ROCE (avg)

18.86%

ROE (avg)

14.94%

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

1.32

EV to EBIT

74.92

EV to EBITDA

19.79

EV to Capital Employed

1.35

EV to Sales

1.95

PEG Ratio

Dividend Yield

1.07%

ROCE (Latest)

1.80%

ROE (Latest)

2.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

4What is working for the Company

NET SALES(Q)

Highest at CNY 1,515.29 MM

PRE-TAX PROFIT(Q)

At CNY 140.55 MM has Grown at 63.03%

NET PROFIT(Q)

At CNY 126.06 MM has Grown at 69.05%

-17What is not working for the Company

NET PROFIT(HY)

At CNY 36.58 MM has Grown at -90.59%

OPERATING CASH FLOW(Y)

Lowest at CNY 686.72 MM

ROCE(HY)

Lowest at 2.55%

RAW MATERIAL COST(Y)

Grown by 39.22% (YoY

CASH AND EQV(HY)

Lowest at CNY 4,623.08 MM

DEBT-EQUITY RATIO (HY)

Highest at -6.08 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.96 times

Here's what is working for Anhui Jinhe Industrial Co., Ltd.

Net Sales

Highest at CNY 1,515.29 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 1,515.29 MM has Grown at 23.42%

over average net sales of the previous four periods of CNY 1,227.77 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 140.55 MM has Grown at 63.03%

over average net sales of the previous four periods of CNY 86.21 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 126.06 MM has Grown at 69.05%

over average net sales of the previous four periods of CNY 74.57 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Here's what is not working for Anhui Jinhe Industrial Co., Ltd.

Operating Cash Flow

Lowest at CNY 686.72 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)

Cash and Eqv

Lowest at CNY 4,623.08 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -6.08 %

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

Debtors Turnover Ratio

Lowest at 3.96 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 39.22% (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