Guangzhou Jointas Chemical Joint Stock Co., Ltd. (002909) 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

Guangzhou Jointas Chemical Joint Stock Co., Ltd.

Why is Guangzhou Jointas Chemical Joint Stock Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -6.00% and Operating profit at -172.65% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.55% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -6.00% and Operating profit at -172.65% over the last 5 years

With a fall in Operating Profit of -14.97%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 4 consecutive quarters
NET PROFIT(HY) At CNY -48.64 MM has Grown at -10,659.34%
OPERATING CASH FLOW(Y) Lowest at CNY 118.47 MM
ROCE(HY) Lowest at -3.92%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -20.83%, its profits have fallen by -303.5%
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -20.83% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

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 Other Industrial Products)

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

Is Guangzhou Jointas Chemical Joint Stock Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangzhou Jointas Chemical Joint Stock Co., Ltd.

-100.0%

0.23

42.19%

China Shanghai Composite

18.87%

1.35

13.94%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.00%

EBIT Growth (5y)

-172.65%

EBIT to Interest (avg)

3.25

Debt to EBITDA (avg)

3.74

Net Debt to Equity (avg)

0.62

Sales to Capital Employed (avg)

0.72

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.96%

ROE (avg)

4.55%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.26

EV to EBIT

-88.53

EV to EBITDA

77.17

EV to Capital Employed

1.69

EV to Sales

2.50

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.91%

ROE (Latest)

-5.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -13.75% (YoY

-29What is not working for the Company

NET PROFIT(HY)

At CNY -48.64 MM has Grown at -10,659.34%

OPERATING CASH FLOW(Y)

Lowest at CNY 118.47 MM

ROCE(HY)

Lowest at -3.92%

CASH AND EQV(HY)

Lowest at CNY 226.81 MM

DEBT-EQUITY RATIO (HY)

Highest at 86.47 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.3 times

NET SALES(Q)

Lowest at CNY 208.33 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -4.55 %

PRE-TAX PROFIT(Q)

At CNY -14.04 MM has Fallen at -39.48%

Here's what is working for Guangzhou Jointas Chemical Joint Stock Co., Ltd.

Raw Material Cost

Fallen by -13.75% (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 Guangzhou Jointas Chemical Joint Stock Co., Ltd.

Net Profit

At CNY -48.64 MM has Grown at -10,659.34%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 208.33 MM has Fallen at -23.25%

over average net sales of the previous four periods of CNY 271.43 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 118.47 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 208.33 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit Margin

Lowest at -4.55 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY -14.04 MM has Fallen at -39.48%

over average net sales of the previous four periods of CNY -10.07 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Cash and Eqv

Lowest at CNY 226.81 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 86.47 %

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

Inventory Turnover Ratio

Lowest at 7.3 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio