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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Daoming Optics & Chemical Co., Ltd.

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

Positive results in Mar 25

OPERATING CASH FLOW(Y) Highest at CNY 320.27 MM
CASH AND EQV(HY) Highest at CNY 2,067.86 MM
INVENTORY TURNOVER RATIO(HY) Highest at 2.18%

With ROE of 8.46%, it has a very attractive valuation with a 2.72 Price to Book Value

Over the past year, while the stock has generated a return of 26.95%, its profits have risen by 7.2% ; the PEG ratio of the company is 4.5
At the current price, the company has a high dividend yield of 2.8

Consistent Returns over the last 3 years

Along with generating 26.95% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

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.

65.74%

1.43

41.62%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.30%

EBIT Growth (5y)

1.34%

EBIT to Interest (avg)

78.25

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.51

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

2.72

EV to EBIT

27.82

EV to EBITDA

17.13

EV to Capital Employed

3.19

EV to Sales

3.63

PEG Ratio

4.49

Dividend Yield

2.77%

ROCE (Latest)

11.47%

ROE (Latest)

8.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 320.27 MM

CASH AND EQV(HY)

Highest at CNY 2,067.86 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.18%

DEBTORS TURNOVER RATIO(HY)

Highest at 3.95%

EPS(Q)

Highest at CNY 0.08

-7What is not working for the Company

INTEREST(Q)

At CNY 2.8 MM has Grown at 717.92%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,429.49

RAW MATERIAL COST(Y)

Grown by 7.24% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 40.07 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.17 %

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

Operating Cash Flow

Highest at CNY 320.27 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)

EPS

Highest at CNY 0.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 2,067.86 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.18%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.95%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Daoming Optics & Chemical Co., Ltd.

Interest

At CNY 2.8 MM has Grown at 717.92%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,429.49

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 40.07 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 12.17 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 7.24% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales