Grinm Advanced Materials Co., Ltd. (600206) 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

Grinm Advanced Materials Co., Ltd.

Why is Grinm Advanced Materials Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -5.24% and Operating profit at -2.03% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

NET PROFIT(9M) At CNY 237.3 MM has Grown at -63.18%
INVENTORY TURNOVER RATIO(HY) Lowest at 4.73 times
DEBTORS TURNOVER RATIO(HY) Lowest at 6.47 times

With ROE of 1.13%, it has a fair valuation with a 4.57 Price to Book Value

Over the past year, while the stock has generated a return of 15.45%, its profits have fallen by -73.7%
At the current price, the company has a high dividend yield of 0.5

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Grinm Advanced Materials Co., Ltd. should be less than 10%
Overall Portfolio exposure to Minerals & Mining should be less than 30%

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

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

Is Grinm Advanced Materials Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Grinm Advanced Materials Co., Ltd.

23.29%

3.79

43.55%

China Shanghai Composite

16.67%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.24%

EBIT Growth (5y)

-2.03%

EBIT to Interest (avg)

7.19

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

2.01

Tax Ratio

81.41%

Dividend Payout Ratio

62.46%

Pledged Shares

Institutional Holding

ROCE (avg)

4.76%

ROE (avg)

5.02%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

405

Industry P/E

Price to Book Value

4.57

EV to EBIT

349.21

EV to EBITDA

85.11

EV to Capital Employed

5.58

EV to Sales

1.98

PEG Ratio

Dividend Yield

0.51%

ROCE (Latest)

1.60%

ROE (Latest)

1.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

17What is working for the Company

ROCE(HY)

Highest at 6.86%

RAW MATERIAL COST(Y)

Fallen by -71.86% (YoY

CASH AND EQV(HY)

Highest at CNY 3,431.76 MM

NET SALES(Q)

Highest at CNY 2,674.47 MM

OPERATING PROFIT(Q)

Highest at CNY 169.06 MM

OPERATING PROFIT MARGIN(Q)

Highest at 6.32 %

PRE-TAX PROFIT(Q)

Highest at CNY 161.22 MM

NET PROFIT(Q)

Highest at CNY 108.9 MM

EPS(Q)

Highest at CNY 0.14

-6What is not working for the Company

NET PROFIT(9M)

At CNY 237.3 MM has Grown at -63.18%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.73 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.47 times

Here's what is working for Grinm Advanced Materials Co., Ltd.

Pre-Tax Profit

At CNY 161.22 MM has Grown at 533.51%

over average net sales of the previous four periods of CNY 25.45 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

Highest at CNY 2,674.47 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 2,674.47 MM has Grown at 23.1%

over average net sales of the previous four periods of CNY 2,172.55 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 169.06 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 6.32 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 161.22 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 108.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 108.9 MM has Grown at 87.33%

over average net sales of the previous four periods of CNY 58.13 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.14

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 3,431.76 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -71.86% (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 Grinm Advanced Materials Co., Ltd.

Inventory Turnover Ratio

Lowest at 4.73 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 6.47 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio