Cangzhou Dahua Co., Ltd. (600230) 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

Cangzhou Dahua Co., Ltd.

Why is Cangzhou Dahua Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.54%

The company has been able to generate a Return on Capital Employed (avg) of 3.54% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 24.61% and Operating profit at 15.07% over the last 5 years

Positive results in Mar 25

NET PROFIT(HY) Higher at CNY 14.62 MM
DEBT-EQUITY RATIO (HY) Lowest at 11.26 %

With ROE of 0.56%, it has a expensive valuation with a 1.26 Price to Book Value

Over the past year, while the stock has generated a return of 80.92%, its profits have fallen by -78.9%

Market Beating Performance

The stock has generated a return of 80.92% in the last 1 year, much higher than market (China Shanghai Composite) returns of 25.14%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Cangzhou Dahua Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

Is Cangzhou Dahua Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Cangzhou Dahua Co., Ltd.

80.37%

1.68

45.89%

China Shanghai Composite

26.2%

1.79

14.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.61%

EBIT Growth (5y)

15.07%

EBIT to Interest (avg)

13.13

Debt to EBITDA (avg)

1.50

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

0.98

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

31.34%

Pledged Shares

Institutional Holding

ROCE (avg)

3.54%

ROE (avg)

4.61%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

223

Industry P/E

Price to Book Value

1.26

EV to EBIT

1413.56

EV to EBITDA

10.78

EV to Capital Employed

1.23

EV to Sales

1.15

PEG Ratio

Dividend Yield

0.17%

ROCE (Latest)

0.09%

ROE (Latest)

0.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

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

14What is working for the Company

NET PROFIT(HY)

Higher at CNY 14.62 MM

DEBT-EQUITY RATIO (HY)

Lowest at 11.26 %

-38What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 9.32 MM has Fallen at -60.14%

NET PROFIT(Q)

At CNY 8.12 MM has Fallen at -59.98%

OPERATING CASH FLOW(Y)

Lowest at CNY 226.61 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 168.92

RAW MATERIAL COST(Y)

Grown by 9.83% (YoY

NET SALES(Q)

Lowest at CNY 1,049.88 MM

OPERATING PROFIT(Q)

Lowest at CNY 4.86 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.46 %

Here's what is working for Cangzhou Dahua Co., Ltd.

Debt-Equity Ratio

Lowest at 11.26 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Lowest at 11.26 %

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 Cangzhou Dahua Co., Ltd.

Pre-Tax Profit

At CNY 9.32 MM has Fallen at -60.14%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 9.32 MM has Fallen at -60.14%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 8.12 MM has Fallen at -59.98%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Profit

At CNY 8.12 MM has Fallen at -59.98%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 168.92

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest Coverage Ratio

Lowest at 168.92

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 226.61 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Cash Flow

Lowest at CNY 226.61 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 1,049.88 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 1,049.88 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -15.46%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -15.46%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 4.86 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit

Lowest at CNY 4.86 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.46 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit Margin

Lowest at 0.46 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 9.83% (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

Raw Material Cost

Grown by 9.83% (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