Guizhou Chanhen Chemical Corp. (002895) 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

Guizhou Chanhen Chemical Corp.

Why is Guizhou Chanhen Chemical Corp. ?

Positive results in Mar 26

DEBT-EQUITY RATIO (HY) Lowest at 16.15 %
INVENTORY TURNOVER RATIO(HY) Highest at 5.59 times
DEBTORS TURNOVER RATIO(HY) Highest at 7.64 times

With ROE of 16.79%, it has a fair valuation with a 2.26 Price to Book Value

Over the past year, while the stock has generated a return of 33.77%, its profits have risen by 27.4% ; the PEG ratio of the company is 2.6
At the current price, the company has a high dividend yield of 8.4

Consistent Returns over the last 3 years

Along with generating 33.77% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guizhou Chanhen Chemical Corp. 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 Guizhou Chanhen Chemical Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guizhou Chanhen Chemical Corp.

29.43%

1.08

43.80%

China Shanghai Composite

18.87%

1.36

13.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

36.71%

EBIT Growth (5y)

54.52%

EBIT to Interest (avg)

12.16

Debt to EBITDA (avg)

1.29

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

0.60

Tax Ratio

17.74%

Dividend Payout Ratio

82.20%

Pledged Shares

Institutional Holding

ROCE (avg)

12.69%

ROE (avg)

13.39%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.26

EV to EBIT

12.16

EV to EBITDA

9.77

EV to Capital Employed

2.08

EV to Sales

2.21

PEG Ratio

2.56

Dividend Yield

8.43%

ROCE (Latest)

17.11%

ROE (Latest)

16.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

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

12What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 16.15 %

INVENTORY TURNOVER RATIO(HY)

Highest at 5.59 times

DEBTORS TURNOVER RATIO(HY)

Highest at 7.64 times

NET SALES(Q)

At CNY 1,823.65 MM has Grown at 22.14%

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 359.49 MM

INTEREST(Q)

At CNY 11.83 MM has Grown at inf%

RAW MATERIAL COST(Y)

Grown by 11.67% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 252.04 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.82 %

PRE-TAX PROFIT(Q)

Lowest at CNY 238.74 MM

NET PROFIT(Q)

Lowest at CNY 188.2 MM

EPS(Q)

Lowest at CNY 0.31

Here's what is working for Guizhou Chanhen Chemical Corp.

Debt-Equity Ratio

Lowest at 16.15 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 5.59 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

At CNY 1,823.65 MM has Grown at 22.14%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 7.64 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Guizhou Chanhen Chemical Corp.

Interest

At CNY 11.83 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 359.49 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 252.04 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 13.82 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 238.74 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 188.2 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.31

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 11.67% (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