Daoming Optics & Chemical Co., Ltd. (002632) 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

Daoming Optics & Chemical Co., Ltd.

Why is Daoming Optics & Chemical Co., Ltd. ?

With a growth in Net Profit of 4.66%, the company declared Very Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 480.31 MM
RAW MATERIAL COST(Y) Fallen by -21.35% (YoY)
CASH AND EQV(HY) Highest at CNY 2,335.52 MM

With ROE of 8.46%, it has a very attractive valuation with a 3.10 Price to Book Value

Over the past year, while the stock has generated a return of 37.00%, its profits have risen by 7.2% ; the PEG ratio of the company is 5.1
At the current price, the company has a high dividend yield of 2.4

Market Beating Performance

The stock has generated a return of 37.00% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.17%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Daoming Optics & Chemical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Daoming Optics & Chemical Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Daoming Optics & Chemical Co., Ltd.

41.7%

1.66

48.10%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.42%

EBIT Growth (5y)

-0.55%

EBIT to Interest (avg)

78.25

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.52

Tax Ratio

14.89%

Dividend Payout Ratio

95.55%

Pledged Shares

Institutional Holding

ROCE (avg)

10.00%

ROE (avg)

8.88%

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

3.10

EV to EBIT

32.06

EV to EBITDA

19.74

EV to Capital Employed

3.68

EV to Sales

4.18

PEG Ratio

5.12

Dividend Yield

2.43%

ROCE (Latest)

11.47%

ROE (Latest)

8.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 480.31 MM

RAW MATERIAL COST(Y)

Fallen by -21.35% (YoY

CASH AND EQV(HY)

Highest at CNY 2,335.52 MM

DEBT-EQUITY RATIO (HY)

Lowest at -23.62 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.39 times

PRE-TAX PROFIT(Q)

Highest at CNY 81.1 MM

NET PROFIT(Q)

Highest at CNY 66.86 MM

EPS(Q)

Highest at CNY 0.1

-4What is not working for the Company

INTEREST(HY)

At CNY 2.79 MM has Grown at 44.63%

Here's what is working for Daoming Optics & Chemical Co., Ltd.

Operating Cash Flow

Highest at CNY 480.31 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 81.1 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 66.86 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 2,335.52 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -23.62 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.39 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -21.35% (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 Daoming Optics & Chemical Co., Ltd.

Interest

At CNY 2.79 MM has Grown at 44.63%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)