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. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 14.15% and Operating profit at 36.10% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 54.81% signifying low profitability per unit of shareholders funds

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

INTEREST(Q) At CNY 132.74 MM has Grown at 16.98%
INTEREST COVERAGE RATIO(Q) Lowest at 286.87
PRE-TAX PROFIT(Q) At CNY 308.41 MM has Fallen at -43.87%

With ROE of 25.05%, it has a expensive valuation with a 1.93 Price to Book Value

Over the past year, while the stock has generated a return of 14.71%, its profits have fallen by -22.1%
At the current price, the company has a high dividend yield of 1.6

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, Low Return

Absolute

Risk Adjusted

Volatility

Hubei Yihua Chemical Industry Co., Ltd.

14.71%

-0.05

45.91%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.15%

EBIT Growth (5y)

36.10%

EBIT to Interest (avg)

3.61

Debt to EBITDA (avg)

4.74

Net Debt to Equity (avg)

1.52

Sales to Capital Employed (avg)

1.06

Tax Ratio

15.05%

Dividend Payout Ratio

33.55%

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

1.93

EV to EBIT

13.67

EV to EBITDA

7.42

EV to Capital Employed

1.27

EV to Sales

1.09

PEG Ratio

Dividend Yield

1.56%

ROCE (Latest)

9.28%

ROE (Latest)

25.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

1What is working for the Company

NO KEY POSITIVE TRIGGERS

-13What is not working for the Company

INTEREST(Q)

At CNY 132.74 MM has Grown at 16.98%

INTEREST COVERAGE RATIO(Q)

Lowest at 286.87

PRE-TAX PROFIT(Q)

At CNY 308.41 MM has Fallen at -43.87%

RAW MATERIAL COST(Y)

Grown by 27.64% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 17.73 times

OPERATING PROFIT(Q)

Lowest at CNY 380.79 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.64 %

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

Interest

At CNY 132.74 MM has Grown at 16.98%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 286.87

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 308.41 MM has Fallen at -43.87%

over average net sales of the previous four periods of CNY 549.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Profit

Lowest at CNY 380.79 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.64 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 17.73 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 27.64% (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