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 4.38% and Operating profit at -1.46% over the last 5 years

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

NET PROFIT(HY) At CNY 25.6 MM has Grown at -62.16%
ROCE(HY) Lowest at 0.65%
INTEREST COVERAGE RATIO(Q) Lowest at 460.56

With ROE of 1.36%, it has a attractive valuation with a 0.49 Price to Book Value

Over the past year, while the stock has generated a return of 28.05%, its profits have fallen by -47.7%
At the current price, the company has a high dividend yield of 0.7

Market Beating Performance

The stock has generated a return of 28.05% in the last 1 year, much higher than market (China Shanghai Composite) returns of 13.33%

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, High Return

Absolute

Risk Adjusted

Volatility

Chengzhi Co., Ltd.

25.03%

0.84

33.82%

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)

4.38%

EBIT Growth (5y)

-1.46%

EBIT to Interest (avg)

4.03

Debt to EBITDA (avg)

1.64

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

0.50

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

0.49

EV to EBIT

27.76

EV to EBITDA

9.56

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

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

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

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -34% (YoY

CASH AND EQV(HY)

Highest at CNY 7,652.78 MM

PRE-TAX PROFIT(Q)

Highest at CNY 162.49 MM

NET PROFIT(Q)

Highest at CNY 86.86 MM

EPS(Q)

Highest at CNY 0.07

-15What is not working for the Company

NET PROFIT(HY)

At CNY 25.6 MM has Grown at -62.16%

ROCE(HY)

Lowest at 0.65%

INTEREST COVERAGE RATIO(Q)

Lowest at 460.56

DEBT-EQUITY RATIO (HY)

Highest at 14.88 %

OPERATING PROFIT(Q)

Lowest at CNY 188.69 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.93 %

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

Net Profit

At CNY 86.86 MM has Grown at 200.28%

over average net sales of the previous four periods of CNY 28.93 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 162.49 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 162.49 MM has Grown at 98.33%

over average net sales of the previous four periods of CNY 81.93 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 86.86 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.07

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 7,652.78 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -34% (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.

Interest Coverage Ratio

Lowest at 460.56

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 188.69 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.93 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 14.88 %

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