ScoreWhy is GEM Co., Ltd. ?
1
The company is Net-Debt Free
- 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
- The company is Net-Debt Free
- 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
3
With ROE of 9.21%, it has a expensive valuation with a 2.01 Price to Book Value
- Over the past year, while the stock has generated a return of 46.05%, its profits have risen by 298.8% ; the PEG ratio of the company is 0.1
- At the current price, the company has a high dividend yield of 0.8
4
Market Beating Performance
- The stock has generated a return of 46.05% in the last 1 year, much higher than market (China Shanghai Composite) returns of 26.42%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to GEM Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Specialty Chemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is GEM Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
GEM Co., Ltd.
46.05%
1.00
38.74%
China Shanghai Composite
26.42%
2.04
12.97%
Quality
Management Risk
Growth
Capital StructureQuality 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%
ValuationValuation Key Factors 
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%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What 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 periodsMOJO 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 periodsMOJO 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 periodsMOJO 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 periodsMOJO 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 periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 5.61 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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