Baowu Magnesium Technology Co., Ltd. (002182) 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

Baowu Magnesium Technology Co., Ltd.

Why is Baowu Magnesium Technology Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 10.99% and Operating profit at -12.20% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 10.01% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 10.99% and Operating profit at -12.20% over the last 5 years

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

INTEREST(HY) At CNY 89.01 MM has Grown at 82.25%
NET PROFIT(HY) At CNY 58.62 MM has Grown at -36.97%
ROCE(HY) Lowest at 1.74%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 37.12%, its profits have fallen by -66.8%
At the current price, the company has a high dividend yield of 0.2

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 Baowu Magnesium Technology Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Baowu Magnesium Technology Co., Ltd.

37.12%

0.60

43.44%

China Shanghai Composite

24.7%

1.91

12.94%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.99%

EBIT Growth (5y)

-12.20%

EBIT to Interest (avg)

5.40

Debt to EBITDA (avg)

5.39

Net Debt to Equity (avg)

1.07

Sales to Capital Employed (avg)

0.82

Tax Ratio

15.84%

Dividend Payout Ratio

31.06%

Pledged Shares

Institutional Holding

ROCE (avg)

6.96%

ROE (avg)

10.01%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

136

Industry P/E

Price to Book Value

2.83

EV to EBIT

109.67

EV to EBITDA

31.32

EV to Capital Employed

1.88

EV to Sales

2.27

PEG Ratio

Dividend Yield

0.21%

ROCE (Latest)

1.72%

ROE (Latest)

2.08%

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 Bullish

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

INVENTORY TURNOVER RATIO(HY)

Highest at 6 times

RAW MATERIAL COST(Y)

Fallen by -8.29% (YoY

CASH AND EQV(HY)

Highest at CNY 1,191.23 MM

-23What is not working for the Company

INTEREST(HY)

At CNY 89.01 MM has Grown at 82.25%

NET PROFIT(HY)

At CNY 58.62 MM has Grown at -36.97%

ROCE(HY)

Lowest at 1.74%

DEBT-EQUITY RATIO (HY)

Highest at 115.2 %

INTEREST COVERAGE RATIO(Q)

Lowest at 189.19

OPERATING PROFIT(Q)

Lowest at CNY 59.07 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.26 %

Here's what is working for Baowu Magnesium Technology Co., Ltd.

Inventory Turnover Ratio

Highest at 6 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at CNY 1,191.23 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -8.29% (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 Baowu Magnesium Technology Co., Ltd.

Interest

At CNY 89.01 MM has Grown at 82.25%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 58.62 MM has Grown at -36.97%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 189.19

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 115.2 % and Grown

In each half year 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

Operating Profit

Lowest at CNY 59.07 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.26 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales