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

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Guizhou Chanhen Chemical Corp.

Why is Guizhou Chanhen Chemical Corp. ?

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 789.93 MM
DEBT-EQUITY RATIO (HY) Lowest at 34.32 %
NET SALES(Q) At CNY 1,461.77 MM has Grown at 43.16%

With ROE of 17.45%, it has a very attractive valuation with a 2.27 Price to Book Value

Over the past year, while the stock has generated a return of 72.39%, its profits have risen by 38% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 4.9

Market Beating performance in long term as well as near term

Along with generating 72.39% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

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?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Guizhou Chanhen Chemical Corp.

53.36%

2.55

35.01%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

30.52%

EBIT Growth (5y)

40.72%

EBIT to Interest (avg)

12.16

Debt to EBITDA (avg)

1.29

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

0.49

Tax Ratio

17.74%

Dividend Payout Ratio

67.58%

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

2.27

EV to EBIT

12.20

EV to EBITDA

9.15

EV to Capital Employed

1.93

EV to Sales

2.66

PEG Ratio

0.34

Dividend Yield

4.95%

ROCE (Latest)

15.85%

ROE (Latest)

17.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 789.93 MM

DEBT-EQUITY RATIO (HY)

Lowest at 34.32 %

NET SALES(Q)

At CNY 1,461.77 MM has Grown at 43.16%

INVENTORY TURNOVER RATIO(HY)

Highest at 5.11%

PRE-TAX PROFIT(Q)

At CNY 256.99 MM has Grown at 55.38%

-7What is not working for the Company

INTEREST(Q)

At CNY 31.84 MM has Grown at 55.78%

RAW MATERIAL COST(Y)

Grown by 14.84% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 266.24 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 18.21 %

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

Net Sales

At CNY 1,461.77 MM has Grown at 43.16%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at 34.32 % 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

Operating Cash Flow

Highest at CNY 789.93 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 256.99 MM has Grown at 55.38%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Highest at 5.11%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Interest

At CNY 31.84 MM has Grown at 55.78%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 266.24 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 18.21 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 14.84% (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

Non Operating Income

Highest at CNY 0.09 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income