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.

144.52%

3.79

43.55%

China Shanghai Composite

8.25%

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)

-5.82%

EBIT Growth (5y)

5.66%

EBIT to Interest (avg)

5.11

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

1.85

Tax Ratio

11.61%

Dividend Payout Ratio

30.69%

Pledged Shares

Institutional Holding

ROCE (avg)

4.90%

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

193

Industry P/E

Price to Book Value

11.84

EV to EBIT

172.86

EV to EBITDA

121.85

EV to Capital Employed

11.65

EV to Sales

4.83

PEG Ratio

0.09

Dividend Yield

0.34%

ROCE (Latest)

6.74%

ROE (Latest)

6.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

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

13What is working for the Company

ROCE(HY)

Highest at 7.65%

NET SALES(Q)

Highest at CNY 3,200.99 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 38.29%

DIVIDEND PER SHARE(HY)

Highest at CNY 7.79

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -795.06 MM

RAW MATERIAL COST(Y)

Grown by 7.03% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -8.43 %

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

Net Sales

Highest at CNY 3,200.99 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

At CNY 3,200.99 MM has Grown at 20.12%

over average net sales of the previous four periods of CNY 2,664.81 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Dividend per share

Highest at CNY 7.79

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 38.29%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Grinm Advanced Materials Co., Ltd.

Operating Cash Flow

Lowest at CNY -795.06 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at -8.43 %

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

Raw Material Cost

Grown by 7.03% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales