Anhui Zhongyuan New Materials Co., Ltd. (603527) 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 Zhongyuan New Materials Co., Ltd.

Why is Anhui Zhongyuan New Materials Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 25.69% and Operating profit at -177.96% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 8.96% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 25.69% and Operating profit at -177.96% over the last 5 years

INTEREST(HY) At CNY 20.3 MM has Grown at 77.86%
RAW MATERIAL COST(Y) Grown by 122.82% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 68.01 %

Underperformed the market in the last 1 year

The stock has generated a return of 1.62% in the last 1 year, much lower than market (China Shanghai Composite) returns of 14.77%

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 Minerals & Mining)

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

Is Anhui Zhongyuan New Materials Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Anhui Zhongyuan New Materials Co., Ltd.

-100.0%

1.25

37.06%

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)

25.69%

EBIT Growth (5y)

-177.96%

EBIT to Interest (avg)

5.73

Debt to EBITDA (avg)

6.21

Net Debt to Equity (avg)

0.68

Sales to Capital Employed (avg)

2.78

Tax Ratio

13.72%

Dividend Payout Ratio

39.84%

Pledged Shares

Institutional Holding

ROCE (avg)

6.25%

ROE (avg)

8.96%

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

0.78

EV to EBIT

-112.53

EV to EBITDA

47.21

EV to Capital Employed

0.87

EV to Sales

0.31

PEG Ratio

0.54

Dividend Yield

1.50%

ROCE (Latest)

-0.78%

ROE (Latest)

6.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

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

18What is working for the Company

NET SALES(HY)

At CNY 4,853.07 MM has Grown at 28.19%

PRE-TAX PROFIT(Q)

Highest at CNY 90.96 MM

NET PROFIT(Q)

Highest at CNY 78.03 MM

EPS(Q)

Highest at CNY 0.23

-14What is not working for the Company

INTEREST(HY)

At CNY 20.3 MM has Grown at 77.86%

RAW MATERIAL COST(Y)

Grown by 122.82% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 68.01 %

OPERATING PROFIT(Q)

Lowest at CNY -17.52 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.8 %

Here's what is working for Anhui Zhongyuan New Materials Co., Ltd.

Pre-Tax Profit

At CNY 90.96 MM has Grown at 205.44%

over average net sales of the previous four periods of CNY 29.78 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 78.03 MM has Grown at 183.81%

over average net sales of the previous four periods of CNY 27.49 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 4,853.07 MM has Grown at 28.19%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 90.96 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 78.03 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.23

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Anhui Zhongyuan New Materials Co., Ltd.

Interest

At CNY 20.3 MM has Grown at 77.86%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -17.52 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -0.8 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 68.01 %

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 122.82% (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

Non Operating Income

Highest at CNY 1.4 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income