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 -21.17%, its profits have fallen by -0.8%

Below par performance in long term as well as near term

Along with generating -21.17% 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.

-22.65%

-0.54

38.68%

China Shanghai Composite

23.91%

1.73

13.79%

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)

17.25

Debt to EBITDA (avg)

0.63

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

1.07

Tax Ratio

15.15%

Dividend Payout Ratio

40.06%

Pledged Shares

Institutional Holding

ROCE (avg)

9.21%

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

1.67

EV to EBIT

12.80

EV to EBITDA

10.19

EV to Capital Employed

1.92

EV to Sales

1.18

PEG Ratio

Dividend Yield

2.10%

ROCE (Latest)

15.00%

ROE (Latest)

9.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

1What is working for the Company

CASH AND EQV(HY)

Highest at CNY 6,052.08 MM

-18What is not working for the Company

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

RAW MATERIAL COST(Y)

Grown by 5.7% (YoY

NET SALES(Q)

Lowest at CNY 1,844.16 MM

OPERATING PROFIT(Q)

Lowest at CNY 131.17 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.11 %

PRE-TAX PROFIT(Q)

Lowest at CNY 141.03 MM

NET PROFIT(Q)

Lowest at CNY 107.46 MM

EPS(Q)

Lowest at CNY 0.09

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

Cash and Eqv

Highest at CNY 6,052.08 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Explosive Co., Ltd.

Interest

At CNY 8.55 MM has Grown at 14.9%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 3,671.22

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 1,844.16 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 131.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.11 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 141.03 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

Fallen at -29.02%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 107.46 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

Fallen at -34.94%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 5.7% (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