Why is Henan Jindan Lactic Acid Technology Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 7.75% and Operating profit at -3.25% over the last 5 years
2
Positive results in Mar 26
- OPERATING CASH FLOW(Y) Highest at CNY 327.17 MM
- NET PROFIT(HY) At CNY 12.33 MM has Grown at 148.44%
3
With ROE of 4.24%, it has a expensive valuation with a 0.69 Price to Book Value
- Over the past year, while the stock has generated a return of -17.03%, its profits have risen by 232.3% ; the PEG ratio of the company is 0.1
- At the current price, the company has a high dividend yield of 1.1
4
Below par performance in long term as well as near term
- Along with generating -17.03% 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 Specialty Chemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Henan Jindan Lactic Acid Technology Co., Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Henan Jindan Lactic Acid Technology Co., Ltd.
-100.0%
-0.16
35.48%
China Shanghai Composite
0.9%
1.20
14.07%
Quality key factors
Factor
Value
Sales Growth (5y)
7.75%
EBIT Growth (5y)
-3.25%
EBIT to Interest (avg)
6.88
Debt to EBITDA (avg)
2.61
Net Debt to Equity (avg)
0.46
Sales to Capital Employed (avg)
0.48
Tax Ratio
6.24%
Dividend Payout Ratio
18.18%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.32%
ROE (avg)
6.04%
Valuation Key Factors 
Factor
Value
P/E Ratio
30
Industry P/E
Price to Book Value
1.28
EV to EBIT
37.73
EV to EBITDA
16.06
EV to Capital Employed
1.23
EV to Sales
2.17
PEG Ratio
0.13
Dividend Yield
0.58%
ROCE (Latest)
3.27%
ROE (Latest)
4.24%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Movement
6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 337.79 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 20.97 %
INVENTORY TURNOVER RATIO(HY)
Highest at 5.26 times
NET SALES(Q)
Highest at CNY 435.98 MM
-16What is not working for the Company
PRE-TAX PROFIT(Q)
At CNY 23.16 MM has Fallen at -64.95%
NET PROFIT(Q)
At CNY 22.23 MM has Fallen at -61.12%
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.1 times
RAW MATERIAL COST(Y)
Grown by 38.74% (YoY
INTEREST(Q)
Highest at CNY 5.75 MM
Here's what is working for Henan Jindan Lactic Acid Technology Co., Ltd.
Operating Cash Flow
Highest at CNY 337.79 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Sales
Highest at CNY 435.98 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Debt-Equity Ratio
Lowest at 20.97 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 5.26 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Depreciation
At CNY 45.65 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 Henan Jindan Lactic Acid Technology Co., Ltd.
Pre-Tax Profit
At CNY 23.16 MM has Fallen at -64.95%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 22.23 MM has Fallen at -61.12%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Interest
At CNY 5.75 MM has Grown at 19.92%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debtors Turnover Ratio
Lowest at 6.1 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Interest
Highest at CNY 5.75 MM
in the last five periods and Increased by 19.92% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Raw Material Cost
Grown by 38.74% (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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