Chengxin Lithium Group Co., Ltd. (002240) 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

Chengxin Lithium Group Co., Ltd.

Why is Chengxin Lithium Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 15.36% and Operating profit at -189.48% over the last 5 years

The company has declared Negative results for the last 9 consecutive quarters

NET PROFIT(HY) At CNY -600.84 MM has Grown at -68.21%
OPERATING CASH FLOW(Y) Lowest at CNY 791.59 MM
NET SALES(9M) At CNY 3,091.25 MM has Grown at -11.07%

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 168.36%, its profits have fallen by -479.5%
At the current price, the company has a high dividend yield of 0

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 Chengxin Lithium Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Chengxin Lithium Group Co., Ltd.

172.14%

2.23

59.26%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.36%

EBIT Growth (5y)

-189.48%

EBIT to Interest (avg)

18.28

Debt to EBITDA (avg)

6.07

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

0.33

Tax Ratio

2.60%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

17.66%

ROE (avg)

15.30%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.53

EV to EBIT

-16.82

EV to EBITDA

-31.22

EV to Capital Employed

1.35

EV to Sales

6.26

PEG Ratio

Dividend Yield

ROCE (Latest)

-8.02%

ROE (Latest)

-12.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

17What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3,181.08% (YoY

NET SALES(Q)

Highest at CNY 1,480.71 MM

OPERATING PROFIT(Q)

Highest at CNY 339.22 MM

OPERATING PROFIT MARGIN(Q)

Highest at 22.91 %

PRE-TAX PROFIT(Q)

Highest at CNY 240.49 MM

NET PROFIT(Q)

Highest at CNY 83.11 MM

EPS(Q)

Highest at CNY 0.1

-18What is not working for the Company

NET PROFIT(HY)

At CNY -600.84 MM has Grown at -68.21%

OPERATING CASH FLOW(Y)

Lowest at CNY 791.59 MM

NET SALES(9M)

At CNY 3,091.25 MM has Grown at -11.07%

ROCE(HY)

Lowest at -8.06%

DEBT-EQUITY RATIO (HY)

Highest at 55.32 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.74 times

Here's what is working for Chengxin Lithium Group Co., Ltd.

Net Sales

At CNY 1,480.71 MM has Grown at 63.92%

over average net sales of the previous four periods of CNY 903.31 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 240.49 MM has Grown at 168.13%

over average net sales of the previous four periods of CNY -353.01 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 83.11 MM has Grown at 126.4%

over average net sales of the previous four periods of CNY -314.75 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 1,480.71 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 339.22 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 22.91 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 240.49 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 83.11 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -3,181.08% (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 Chengxin Lithium Group Co., Ltd.

Debt-Equity Ratio

Highest at 55.32 % 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

Inventory Turnover Ratio

Lowest at 1.74 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Cash Flow

Lowest at CNY 791.59 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)