Why is Central Plains Environment Protection Co., Ltd. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 6.18%
- Poor long term growth as Net Sales has grown by an annual rate of 20.52% and Operating profit at 18.18% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
The company has declared Negative results for the last 4 consecutive quarters
- RAW MATERIAL COST(Y) Grown by 9.55% (YoY)
- DEBTORS TURNOVER RATIO(HY) Lowest at 0.57 times
3
With ROE of 11.75%, it has a fair valuation with a 0.93 Price to Book Value
- Over the past year, while the stock has generated a return of -6.59%, its profits have risen by 1.3% ; the PEG ratio of the company is 6
- At the current price, the company has a high dividend yield of 3.1
4
Underperformed the market in the last 1 year
- Even though the market (China Shanghai Composite) has generated returns of 13.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -6.59% returns
How much should you hold?
- Overall Portfolio exposure to Central Plains Environment Protection Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Miscellaneous should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Central Plains Environment Protection Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Central Plains Environment Protection Co., Ltd.
-4.2%
-0.17
21.31%
China Shanghai Composite
13.33%
0.90
14.74%
Quality key factors
Factor
Value
Sales Growth (5y)
20.52%
EBIT Growth (5y)
18.18%
EBIT to Interest (avg)
2.75
Debt to EBITDA (avg)
8.36
Net Debt to Equity (avg)
2.74
Sales to Capital Employed (avg)
0.21
Tax Ratio
4.39%
Dividend Payout Ratio
25.36%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.18%
ROE (avg)
9.99%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
0.93
EV to EBIT
18.23
EV to EBITDA
15.11
EV to Capital Employed
0.98
EV to Sales
6.65
PEG Ratio
6.04
Dividend Yield
3.10%
ROCE (Latest)
5.39%
ROE (Latest)
11.75%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Sideways
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Bullish
Technical Movement
7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY -254.8 MM
NET PROFIT(9M)
Higher at CNY 1,026.62 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 83.99 times
NET SALES(Q)
Highest at CNY 1,459.39 MM
-2What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 9.55% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 0.57 times
Here's what is working for Central Plains Environment Protection Co., Ltd.
Operating Cash Flow
Highest at CNY -254.8 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Sales
Highest at CNY 1,459.39 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Net Sales
At CNY 1,459.39 MM has Grown at 24.52%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Inventory Turnover Ratio
Highest at 83.99 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Profit
Higher at CNY 1,026.62 MM
than preceding 12 month period ended Sep 2025MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (CNY MM)
Here's what is not working for Central Plains Environment Protection Co., Ltd.
Debtors Turnover Ratio
Lowest at 0.57 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 9.55% (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






