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

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)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 34.43% and Operating profit at -261.23% over the last 5 years
The company is Net-Debt Free
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 34.43% and Operating profit at -261.23% over the last 5 years

With a growth in Operating Profit of 1569.1%, the company declared Outstanding results in Mar 26

OPERATING CASH FLOW(Y) Highest at CNY 85.58 MM
RAW MATERIAL COST(Y) Fallen by -272.4% (YoY)
CASH AND EQV(HY) Highest at CNY 708.41 MM

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 128.32%, its profits have fallen by -599.3%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Fujian Acetron New Materials Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Fujian Acetron New Materials Co., Ltd.

128.32%

2.20

70.37%

China Shanghai Composite

20.36%

1.53

13.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

34.43%

EBIT Growth (5y)

-261.23%

EBIT to Interest (avg)

0.71

Debt to EBITDA (avg)

15.08

Net Debt to Equity (avg)

0.78

Sales to Capital Employed (avg)

0.77

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

8.11

EV to EBIT

-78.37

EV to EBITDA

-261.50

EV to Capital Employed

4.76

EV to Sales

4.69

PEG Ratio

Dividend Yield

ROCE (Latest)

-6.07%

ROE (Latest)

-9.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

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

31What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 85.58 MM

RAW MATERIAL COST(Y)

Fallen by -272.4% (YoY

CASH AND EQV(HY)

Highest at CNY 708.41 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.07 times

NET SALES(Q)

Highest at CNY 426.33 MM

OPERATING PROFIT(Q)

Highest at CNY 27.95 MM

OPERATING PROFIT MARGIN(Q)

Highest at 6.56 %

PRE-TAX PROFIT(Q)

Highest at CNY 23.64 MM

NET PROFIT(Q)

Highest at CNY 24.71 MM

EPS(Q)

Highest at CNY 0.11

-8What is not working for the Company

INTEREST(HY)

At CNY 12.47 MM has Grown at 18.85%

DEBT-EQUITY RATIO (HY)

Highest at 92.56 %

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

Pre-Tax Profit

At CNY 23.64 MM has Grown at 257.42%

over average net sales of the previous four periods of CNY -15.02 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 24.71 MM has Grown at 340.82%

over average net sales of the previous four periods of CNY -10.26 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 85.58 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 426.33 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 426.33 MM has Grown at 19.51%

over average net sales of the previous four periods of CNY 356.72 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 27.95 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 6.56 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 23.64 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 24.71 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.11

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 708.41 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.07 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 -272.4% (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.

Interest

At CNY 12.47 MM has Grown at 18.85%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 92.56 % 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