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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Danhua Chemical Technology Co. Ltd.

Why is Danhua Chemical Technology Co. Ltd. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -5.59% and Operating profit at 9.75% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With a growth in Net Sales of 1.52%, the company declared Very Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 13.54 MM
INVENTORY TURNOVER RATIO(HY) Highest at 12.34 times
PRE-TAX PROFIT(Q) Highest at CNY -18.97 MM

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 32.18%, its profits have risen by 35.7%

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 Specialty Chemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Danhua Chemical Technology Co. Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Danhua Chemical Technology Co. Ltd.

-27.64%

0.76

42.34%

China Shanghai Composite

21.43%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.18%

EBIT Growth (5y)

11.21%

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)

1.87

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

45.69

EV to EBIT

-16.91

EV to EBITDA

-39.12

EV to Capital Employed

10.44

EV to Sales

3.18

PEG Ratio

Dividend Yield

ROCE (Latest)

-61.74%

ROE (Latest)

-342.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 5.09 MM

RAW MATERIAL COST(Y)

Fallen by -193.31% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY -12.9 MM

NET PROFIT(Q)

Highest at CNY -11.33 MM

EPS(Q)

Highest at CNY -0.01

-10What is not working for the Company

NET SALES(HY)

At CNY 365.06 MM has Grown at -13.25%

ROCE(HY)

Lowest at -117.61%

DEBT-EQUITY RATIO (HY)

Highest at 399.34 %

INTEREST(Q)

Highest at CNY 6.36 MM

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

Operating Cash Flow

Highest at CNY 5.09 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY -12.9 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 -12.9 MM has Grown at 75.49%

over average net sales of the previous four periods of CNY -52.62 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY -11.33 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY -11.33 MM has Grown at 73.24%

over average net sales of the previous four periods of CNY -42.35 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY -0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -193.31% (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.

Net Sales

At CNY 365.06 MM has Grown at -13.25%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 399.34 % 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

Interest

Highest at CNY 6.36 MM

in the last five periods and Increased by 7.87% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)