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

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 0.29% and Operating profit at -16.36% over the last 5 years

RAW MATERIAL COST(Y) Fallen by -50.63% (YoY)
PRE-TAX PROFIT(Q) Highest at CNY 262.29 MM
NET PROFIT(Q) Highest at CNY 242.92 MM

With ROE of 2.32%, it has a fair valuation with a 0.61 Price to Book Value

Over the past year, while the stock has generated a return of 19.89%, its profits have risen by 28% ; the PEG ratio of the company is 1
At the current price, the company has a high dividend yield of 0.6

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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chengzhi Co., Ltd.

19.32%

0.39

40.99%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.29%

EBIT Growth (5y)

-16.36%

EBIT to Interest (avg)

4.03

Debt to EBITDA (avg)

1.64

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

0.48

Tax Ratio

21.94%

Dividend Payout Ratio

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

0.61

EV to EBIT

27.99

EV to EBITDA

12.91

EV to Capital Employed

0.66

EV to Sales

1.26

PEG Ratio

0.95

Dividend Yield

0.55%

ROCE (Latest)

2.37%

ROE (Latest)

2.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

17What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -50.63% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 262.29 MM

NET PROFIT(Q)

Highest at CNY 242.92 MM

EPS(Q)

Highest at CNY 0.19

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 951.85 MM

NET SALES(HY)

At CNY 5,159.36 MM has Grown at -11.13%

ROCE(HY)

Lowest at 0.39%

DEBT-EQUITY RATIO (HY)

Highest at 16.72 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.63 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.44 times

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

Pre-Tax Profit

At CNY 262.29 MM has Grown at 306.78%

over average net sales of the previous four periods of CNY 64.48 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 242.92 MM has Grown at 1,117.51%

over average net sales of the previous four periods of CNY 19.95 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 262.29 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 242.92 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.19

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -50.63% (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 Chengzhi Co., Ltd.

Operating Cash Flow

Lowest at CNY 951.85 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 5,159.36 MM has Grown at -11.13%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 16.72 %

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 9.63 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 7.44 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio