Fujian Acetron New Materials Co., Ltd. (300706) 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

Fujian Acetron New Materials Co., Ltd.

Why is Fujian Acetron New Materials Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.03%

The company has been able to generate a Return on Capital Employed (avg) of 2.03% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 35.09% and Operating profit at -271.05% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 1.99% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 35.09% and Operating profit at -271.05% over the last 5 years

Negative results in Mar 25

NET PROFIT(HY) At CNY -35.76 MM has Grown at -844.86%
ROCE(HY) Lowest at -3.51%
DEBT-EQUITY RATIO (HY) Highest at 77.99 %

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 48.09%, its profits have fallen by -543.8%
At the current price, the company has a high dividend yield of 0

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 Electronics & Appliances)

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

Is Fujian Acetron New Materials Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Fujian Acetron New Materials Co., Ltd.

-100.0%

1.38

63.53%

China Shanghai Composite

15.19%

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)

35.09%

EBIT Growth (5y)

-271.05%

EBIT to Interest (avg)

0.71

Debt to EBITDA (avg)

15.08

Net Debt to Equity (avg)

0.78

Sales to Capital Employed (avg)

0.68

Tax Ratio

12.76%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.03%

ROE (avg)

1.99%

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

5.60

EV to EBIT

-57.46

EV to EBITDA

-1159.25

EV to Capital Employed

3.46

EV to Sales

3.61

PEG Ratio

Dividend Yield

ROCE (Latest)

-6.03%

ROE (Latest)

-8.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

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

6What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 2.77%

RAW MATERIAL COST(Y)

Fallen by -9.32% (YoY

CASH AND EQV(HY)

Highest at CNY 677.25 MM

PRE-TAX PROFIT(Q)

At CNY -0.15 MM has Grown at 98.04%

NET PROFIT(Q)

At CNY 0.12 MM has Grown at 101.86%

-14What is not working for the Company

NET PROFIT(HY)

At CNY -35.76 MM has Grown at -844.86%

ROCE(HY)

Lowest at -3.51%

DEBT-EQUITY RATIO (HY)

Highest at 77.99 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.6%

Here's what is working for Fujian Acetron New Materials Co., Ltd.

Inventory Turnover Ratio

Highest at 2.77% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Pre-Tax Profit

At CNY -0.15 MM has Grown at 98.04%

over average net sales of the previous four periods of CNY -7.8 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 0.12 MM has Grown at 101.86%

over average net sales of the previous four periods of CNY -6.23 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 677.25 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -9.32% (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 Fujian Acetron New Materials Co., Ltd.

Debt-Equity Ratio

Highest at 77.99 % 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

Debtors Turnover Ratio

Lowest at 4.6%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio