Danhua Chemical Technology Co. Ltd. (600844) 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

Danhua Chemical Technology Co. Ltd.

Why is Danhua Chemical Technology Co. Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0%

Poor long term growth as Net Sales has grown by an annual rate of -6.82% and Operating profit at 7.54% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With a growth in Operating Profit of 16.6%, the company declared Very Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at CNY 12.51 MM
DEBTORS TURNOVER RATIO(HY) Highest at 25.97%
RAW MATERIAL COST(Y) Fallen by -71.55% (YoY)

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 1.84%, its profits have risen by 35.7%

Underperformed the market in the last 1 year

The stock has generated a return of 1.84% in the last 1 year, much lower than market (China Shanghai Composite) returns of 14.77%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Danhua Chemical Technology 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 Danhua Chemical Technology Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Danhua Chemical Technology Co. Ltd.

1.84%

0.60

45.00%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.82%

EBIT Growth (5y)

7.54%

EBIT to Interest (avg)

-20.82

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.64

Sales to Capital Employed (avg)

1.44

Tax Ratio

9.64%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

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

15.25

EV to EBIT

-9.48

EV to EBITDA

-30.78

EV to Capital Employed

9.22

EV to Sales

3.03

PEG Ratio

Dividend Yield

ROCE (Latest)

-97.25%

ROE (Latest)

-219.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

OBV

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

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 12.51 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 25.97%

RAW MATERIAL COST(Y)

Fallen by -71.55% (YoY

NET SALES(Q)

At CNY 230.69 MM has Grown at 16.8%

OPERATING PROFIT(Q)

Highest at CNY 8.26 MM

OPERATING PROFIT MARGIN(Q)

Highest at 3.58 %

PRE-TAX PROFIT(Q)

Highest at CNY -45.02 MM

NET PROFIT(Q)

Highest at CNY -36.19 MM

EPS(Q)

Highest at CNY -0.04

-7What is not working for the Company

INTEREST(9M)

At CNY 16.12 MM has Grown at 31.58%

ROCE(HY)

Lowest at -92.3%

CASH AND EQV(HY)

Lowest at CNY 37.14 MM

Here's what is working for Danhua Chemical Technology Co. Ltd.

Debtors Turnover Ratio

Highest at 25.97% and Grown

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

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Operating Cash Flow

Highest at CNY 12.51 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 230.69 MM has Grown at 16.8%

over average net sales of the previous four periods of CNY 197.5 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 8.26 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 3.58 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY -45.02 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 -36.19 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY -0.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -71.55% (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 Danhua Chemical Technology Co. Ltd.

Interest

At CNY 16.12 MM has Grown at 31.58%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 37.14 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents