Hubei Yihua Chemical Industry Co., Ltd. (000422) 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

Hubei Yihua Chemical Industry Co., Ltd.

Why is Hubei Yihua Chemical Industry Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 10.12% and Operating profit at 101.85% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 54.81% signifying low profitability per unit of shareholders funds

Negative results in Sep 25

INTEREST(HY) At CNY 351.47 MM has Grown at 35.93%
NET PROFIT(9M) At CNY 811.59 MM has Grown at -23.89%
DEBT-EQUITY RATIO (HY) Highest at 360.01 %

With ROE of 17.49%, it has a expensive valuation with a 2.64 Price to Book Value

Over the past year, while the stock has generated a return of 8.38%, its profits have fallen by -16%
At the current price, the company has a high dividend yield of 1.5

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 Chemicals & Petrochemicals)

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

Is Hubei Yihua Chemical Industry Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Hubei Yihua Chemical Industry Co., Ltd.

8.85%

0.53

46.93%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.12%

EBIT Growth (5y)

101.85%

EBIT to Interest (avg)

3.61

Debt to EBITDA (avg)

4.74

Net Debt to Equity (avg)

1.52

Sales to Capital Employed (avg)

1.07

Tax Ratio

15.05%

Dividend Payout Ratio

32.43%

Pledged Shares

Institutional Holding

ROCE (avg)

10.79%

ROE (avg)

54.81%

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

2.64

EV to EBIT

28.92

EV to EBITDA

11.05

EV to Capital Employed

1.39

EV to Sales

1.64

PEG Ratio

Dividend Yield

1.47%

ROCE (Latest)

4.79%

ROE (Latest)

17.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Bullish

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

8What is working for the Company

NET SALES(Q)

At CNY 7,162.2 MM has Grown at 30.11%

PRE-TAX PROFIT(Q)

At CNY 647.41 MM has Grown at 87.65%

NET PROFIT(Q)

Highest at CNY 412.71 MM

EPS(Q)

Highest at CNY 0.39

-18What is not working for the Company

INTEREST(HY)

At CNY 351.47 MM has Grown at 35.93%

NET PROFIT(9M)

At CNY 811.59 MM has Grown at -23.89%

DEBT-EQUITY RATIO (HY)

Highest at 360.01 %

INTEREST COVERAGE RATIO(Q)

Lowest at 352.13

RAW MATERIAL COST(Y)

Grown by 27.4% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.33 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 19.04 times

Here's what is working for Hubei Yihua Chemical Industry Co., Ltd.

Net Profit

At CNY 412.71 MM has Grown at 154.72%

over average net sales of the previous four periods of CNY 162.03 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 7,162.2 MM has Grown at 30.11%

over average net sales of the previous four periods of CNY 5,504.89 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 647.41 MM has Grown at 87.65%

over average net sales of the previous four periods of CNY 345.01 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 412.71 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.39

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Hubei Yihua Chemical Industry Co., Ltd.

Interest

At CNY 351.47 MM has Grown at 35.93%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 352.13

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 360.01 % and Grown

In each half year 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 9.33 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 19.04 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 27.4% (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