Explosive Co., Ltd. (002096) 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

Explosive Co., Ltd.

Why is Explosive Co., Ltd. ?

Negative results in Mar 26

INTEREST(HY) At CNY 8.55 MM has Grown at 14.9%
ROCE(HY) Lowest at 9.33%
INTEREST COVERAGE RATIO(Q) Lowest at 3,671.22

With ROE of 9.75%, it has a attractive valuation with a 1.67 Price to Book Value

Over the past year, while the stock has generated a return of -27.71%, its profits have fallen by -0.8%

Below par performance in long term as well as near term

Along with generating -27.71% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Explosive Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

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

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

Is Explosive Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Explosive Co., Ltd.

-31.23%

-0.67

38.79%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

36.57%

EBIT Growth (5y)

82.83%

EBIT to Interest (avg)

28.18

Debt to EBITDA (avg)

0.79

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

1.07

Tax Ratio

19.70%

Dividend Payout Ratio

40.06%

Pledged Shares

Institutional Holding

ROCE (avg)

10.70%

ROE (avg)

7.69%

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

1.38

EV to EBIT

10.09

EV to EBITDA

8.04

EV to Capital Employed

1.51

EV to Sales

0.93

PEG Ratio

Dividend Yield

2.55%

ROCE (Latest)

15.00%

ROE (Latest)

9.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly 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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -8.1% (YoY

CASH AND EQV(HY)

Highest at CNY 6,346.6 MM

DEBT-EQUITY RATIO (HY)

Lowest at -32.2 %

OPERATING PROFIT MARGIN(Q)

Highest at 15.79 %

-17What is not working for the Company

NET SALES(Q)

At CNY 2,123.26 MM has Fallen at -21.44%

OPERATING CASH FLOW(Y)

Lowest at CNY 473.11 MM

NET PROFIT(9M)

At CNY 473.89 MM has Grown at -21.09%

ROCE(HY)

Lowest at 9.07%

INTEREST(Q)

At CNY 4.11 MM has Grown at 15.14%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.41 times

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

Operating Profit Margin

Highest at 15.79 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at CNY 6,346.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -32.2 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -8.1% (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 Explosive Co., Ltd.

Net Sales

At CNY 2,123.26 MM has Fallen at -21.44%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 4.11 MM has Grown at 15.14%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 473.89 MM has Grown at -21.09%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 473.11 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Lowest at 2.41 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio