Chengzhi Co., Ltd. (000990) 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

Chengzhi Co., Ltd.

Why is Chengzhi Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 6.60% and Operating profit at 4.20% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

DEBT-EQUITY RATIO (HY) Highest at 14.89 %
INTEREST COVERAGE RATIO(Q) Lowest at 543.14
RAW MATERIAL COST(Y) Grown by 44.72% (YoY)

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.39% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Chengzhi 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 Chengzhi Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chengzhi Co., Ltd.

-11.01%

0.16

26.28%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.60%

EBIT Growth (5y)

4.20%

EBIT to Interest (avg)

4.03

Debt to EBITDA (avg)

1.64

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

0.51

Tax Ratio

21.94%

Dividend Payout Ratio

26.34%

Pledged Shares

Institutional Holding

ROCE (avg)

4.10%

ROE (avg)

3.12%

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

0.50

EV to EBIT

27.79

EV to EBITDA

9.57

EV to Capital Employed

0.55

EV to Sales

0.99

PEG Ratio

Dividend Yield

0.69%

ROCE (Latest)

1.99%

ROE (Latest)

1.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

1What is working for the Company

CASH AND EQV(HY)

Highest at CNY 7,553.71 MM

-24What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 14.89 %

INTEREST COVERAGE RATIO(Q)

Lowest at 543.14

RAW MATERIAL COST(Y)

Grown by 44.72% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 209.93 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.43 %

PRE-TAX PROFIT(Q)

Lowest at CNY -27.94 MM

NET PROFIT(Q)

Lowest at CNY -61.26 MM

EPS(Q)

Lowest at CNY -0.05

Here's what is working for Chengzhi Co., Ltd.

Cash and Eqv

Highest at CNY 7,553.71 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Chengzhi Co., Ltd.

Pre-Tax Profit

At CNY -27.94 MM has Fallen at -122.73%

over average net sales of the previous four periods of CNY 122.88 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -61.26 MM has Fallen at -215.75%

over average net sales of the previous four periods of CNY 52.92 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 543.14

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 14.89 % 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 209.93 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.43 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -27.94 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -61.26 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.05

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 44.72% (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