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GEM Co., Ltd.

  • Market Cap: Large Cap
  • Industry: Specialty Chemicals
  • ISIN: CNE100000KT4
CNY
8.12
0.22 (2.78%)

Mar 27

SHE

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
GEM Co., Ltd.

Why is GEM Co., Ltd. ?

1
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 22.17% and Operating profit at 20.91% 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 5.95% signifying low profitability per unit of shareholders funds
2
The company has declared negative results in Mar'2025 after 4 consecutive positive quarters
  • DEBT-EQUITY RATIO (HY) Highest at 157.19 %
  • INTEREST COVERAGE RATIO(Q) Lowest at 245.56
  • INTEREST(Q) Highest at CNY 227.1 MM
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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 Specialty Chemicals)

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

Is GEM Co., Ltd. for you?

High Risk, Medium Return

Absolute
Risk Adjusted
Volatility
GEM Co., Ltd.
20.83%
0.65
37.28%
China Shanghai Composite
16.67%
1.14
14.96%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
22.17%
EBIT Growth (5y)
20.91%
EBIT to Interest (avg)
2.28
Debt to EBITDA (avg)
6.26
Net Debt to Equity (avg)
1.41
Sales to Capital Employed (avg)
0.69
Tax Ratio
16.21%
Dividend Payout Ratio
33.00%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.61%
ROE (avg)
5.95%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
22
Industry P/E
Price to Book Value
2.01
EV to EBIT
30.11
EV to EBITDA
15.85
EV to Capital Employed
1.38
EV to Sales
2.22
PEG Ratio
0.07
Dividend Yield
0.84%
ROCE (Latest)
4.58%
ROE (Latest)
9.21%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company
RAW MATERIAL COST(Y)

Fallen by -9.68% (YoY

CASH AND EQV(HY)

Highest at CNY 10,752.28 MM

NET SALES(Q)

Highest at CNY 9,936.96 MM

-13What is not working for the Company
DEBT-EQUITY RATIO (HY)

Highest at 157.19 %

INTEREST COVERAGE RATIO(Q)

Lowest at 245.56

INTEREST(Q)

Highest at CNY 227.1 MM

OPERATING PROFIT(Q)

Lowest at CNY 557.66 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.61 %

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

Net Sales
Highest at CNY 9,936.96 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Net Sales
At CNY 9,936.96 MM has Grown at 31.89%
Year on Year (YoY)
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv
Highest at CNY 10,752.28 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost
Fallen by -9.68% (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 GEM Co., Ltd.

Interest
At CNY 227.1 MM has Grown at 48.28%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio
Lowest at 245.56
in the last five periods
MOJO Watch
The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio
Highest at 157.19 % 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

Interest
Highest at CNY 227.1 MM
in the last five periods and Increased by 48.28% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit
Lowest at CNY 557.66 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin
Lowest at 5.61 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

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