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

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 24.40% and Operating profit at 16.74% over the last 5 years

Positive results in Sep 25

PRE-TAX PROFIT(Q) Highest at CNY 24.84 MM
NET PROFIT(Q) Highest at CNY 24.24 MM
RAW MATERIAL COST(Y) Fallen by -209.18% (YoY)

With ROE of 0.56%, it has a fair valuation with a 1.25 Price to Book Value

Over the past year, while the stock has generated a return of 134.82%, its profits have fallen by -78.9%

Market Beating performance in long term as well as near term

Along with generating 134.82% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

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.

43.99%

2.39

50.82%

China Shanghai Composite

23.91%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.58%

EBIT Growth (5y)

10.41%

EBIT to Interest (avg)

13.13

Debt to EBITDA (avg)

1.50

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

0.99

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

30.87%

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

Industry P/E

Price to Book Value

1.43

EV to EBIT

83.85

EV to EBITDA

13.84

EV to Capital Employed

1.40

EV to Sales

1.33

PEG Ratio

0.19

Dividend Yield

0.15%

ROCE (Latest)

1.67%

ROE (Latest)

2.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

21What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 6.51 %

RAW MATERIAL COST(Y)

Fallen by -105.57% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 58.14 MM

NET PROFIT(Q)

Highest at CNY 57.83 MM

EPS(Q)

Highest at CNY 0.14

-5What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 3,025.59

NET SALES(Q)

Lowest at CNY 1,048.58 MM

OPERATING PROFIT(Q)

Lowest at CNY 56.38 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.38 %

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

Pre-Tax Profit

At CNY 58.14 MM has Grown at 524.09%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 57.83 MM has Grown at 612.3%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at 6.51 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Pre-Tax Profit

Highest at CNY 58.14 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 57.83 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.14

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -105.57% (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 Cangzhou Dahua Co., Ltd.

Interest Coverage Ratio

Lowest at 3,025.59

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 1,048.58 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 56.38 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.38 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales