Why is Guangxi Hechi Chemical Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of -5.17% and Operating profit at -28.94% over the last 5 years
2
The company has declared Negative results for the last 4 consecutive quarters
- INTEREST COVERAGE RATIO(Q) Lowest at 1,700.1
- INVENTORY TURNOVER RATIO(HY) Lowest at 4.1 times
- NET SALES(Q) Lowest at CNY 37.23 MM
3
With ROE of 4.43%, it has a very expensive valuation with a 11.12 Price to Book Value
- Over the past year, while the stock has generated a return of -25.68%, its profits have fallen by -91.7%
4
Below par performance in long term as well as near term
- Along with generating -25.68% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
How much should you sell?
- 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 Chemicals & Petrochemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Guangxi Hechi Chemical Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Guangxi Hechi Chemical Co., Ltd.
-17.98%
3.25
38.08%
China Shanghai Composite
0.9%
1.20
14.07%
Quality key factors
Factor
Value
Sales Growth (5y)
-5.17%
EBIT Growth (5y)
-28.94%
EBIT to Interest (avg)
1.84
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.27
Sales to Capital Employed (avg)
1.19
Tax Ratio
3.08%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.28%
ROE (avg)
15.04%
Valuation Key Factors 
Factor
Value
P/E Ratio
280
Industry P/E
Price to Book Value
12.40
EV to EBIT
253.31
EV to EBITDA
88.49
EV to Capital Employed
19.40
EV to Sales
10.54
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
7.66%
ROE (Latest)
4.43%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Movement
6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 27.01 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -8.24 %
DEBTORS TURNOVER RATIO(HY)
Highest at 13.22 times
-16What is not working for the Company
PRE-TAX PROFIT(Q)
At CNY 0.08 MM has Fallen at -97.24%
NET PROFIT(Q)
At CNY -0.16 MM has Fallen at -106.52%
RAW MATERIAL COST(Y)
Grown by 30.5% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.68 times
Here's what is working for Guangxi Hechi Chemical Co., Ltd.
Debt-Equity Ratio
Lowest at -8.24 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Operating Cash Flow
Highest at CNY 27.01 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Debtors Turnover Ratio
Highest at 13.22 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Depreciation
At CNY 4.26 MM has Grown at inf%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (CNY MM)
Here's what is not working for Guangxi Hechi Chemical Co., Ltd.
Pre-Tax Profit
At CNY 0.08 MM has Fallen at -97.24%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY -0.16 MM has Fallen at -106.52%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Inventory Turnover Ratio
Lowest at 3.68 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 30.5% (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
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