Henan Jindan Lactic Acid Technology Co., Ltd. (300829) 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

Henan Jindan Lactic Acid Technology Co., Ltd.

Why is Henan Jindan Lactic Acid Technology Co., Ltd. ?

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

With a growth in Net Sales of 13.4%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 327.17 MM
NET PROFIT(HY) At CNY 12.33 MM has Grown at 148.44%

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 -14.08%, 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

Below par performance in long term as well as near term

Along with generating -14.08% 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 hold?

Overall Portfolio exposure to Henan Jindan Lactic Acid Technology Co., Ltd. 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 Henan Jindan Lactic Acid Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Henan Jindan Lactic Acid Technology Co., Ltd.

-17.76%

-0.05

35.19%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.75%

EBIT Growth (5y)

-3.25%

EBIT to Interest (avg)

9.77

Debt to EBITDA (avg)

2.37

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

0.48

Tax Ratio

32.77%

Dividend Payout Ratio

18.18%

Pledged Shares

Institutional Holding

ROCE (avg)

5.69%

ROE (avg)

6.04%

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

0.69

EV to EBIT

22.62

EV to EBITDA

9.63

EV to Capital Employed

0.74

EV to Sales

1.30

PEG Ratio

0.07

Dividend Yield

1.08%

ROCE (Latest)

3.27%

ROE (Latest)

4.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 327.17 MM

NET PROFIT(HY)

At CNY 12.33 MM has Grown at 148.44%

-2What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 20.33% (YoY

PRE-TAX PROFIT(Q)

Fallen at -27.21%

Here's what is working for Henan Jindan Lactic Acid Technology Co., Ltd.

Net Profit

At CNY 12.33 MM has Grown at 148.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 327.17 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Here's what is not working for Henan Jindan Lactic Acid Technology Co., Ltd.

Pre-Tax Profit

Fallen at -27.21%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Raw Material Cost

Grown by 20.33% (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 0.29 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income