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Hubei Zhenhua Chemical Co. Ltd.

  • Market Cap: Large Cap
  • Industry: Specialty Chemicals
  • ISIN: CNE100002FN3
  • SHG: 603067
CNY
40.89
1.03 (2.58%)

Sep 24

SHG

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Hubei Zhenhua Chemical Co. Ltd.

Why is Hubei Zhenhua Chemical Co. Ltd. ?

1
Poor Management Efficiency with a low ROCE of 12.54%
  • The company has been able to generate a Return on Capital Employed (avg) of 12.54% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of 22.09% and Operating profit at 27.38% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 14.08% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 22.09% and Operating profit at 27.38% over the last 5 years
4
Flat results in Jun 26
  • INTEREST(HY) At CNY 21.48 MM has Grown at 9.15%
  • RAW MATERIAL COST(Y) Grown by 23.83% (YoY)
  • DEBTORS TURNOVER RATIO(HY) Lowest at 3.96 times
5
With ROE of 17.40%, it has a expensive valuation with a 8.38 Price to Book Value
  • Over the past year, while the stock has generated a return of 103.94%, its profits have risen by 30.7%
  • At the current price, the company has a high dividend yield of 0
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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 Hubei Zhenhua Chemical Co. Ltd. for you?

High Risk, High Return

Absolute
Risk Adjusted
Volatility
Hubei Zhenhua Chemical Co. Ltd.
127.29%
2.86
84.60%
China Shanghai Composite
0.9%
0.22
14.72%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
22.09%
EBIT Growth (5y)
27.38%
EBIT to Interest (avg)
14.35
Debt to EBITDA (avg)
1.30
Net Debt to Equity (avg)
0.27
Sales to Capital Employed (avg)
0.91
Tax Ratio
12.56%
Dividend Payout Ratio
17.14%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
13.58%
ROE (avg)
14.08%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
48
Industry P/E
Price to Book Value
8.38
EV to EBIT
52.62
EV to EBITDA
40.62
EV to Capital Employed
6.47
EV to Sales
7.14
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
12.30%
ROE (Latest)
17.40%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bullish
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company
INTEREST COVERAGE RATIO(Q)

Highest at 2,960.74

NET PROFIT(9M)

Higher at CNY 562.23 MM

DEBT-EQUITY RATIO (HY)

Lowest at 24.17 %

NET SALES(Q)

Highest at CNY 1,611.46 MM

OPERATING PROFIT(Q)

Highest at CNY 288.88 MM

-8What is not working for the Company
INTEREST(HY)

At CNY 21.48 MM has Grown at 9.15%

RAW MATERIAL COST(Y)

Grown by 23.83% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.96 times

Here's what is working for Hubei Zhenhua Chemical Co. Ltd.

Net Sales
At CNY 1,611.46 MM has Grown at 36.85%
over average net sales of the previous four periods of CNY 1,177.56 MM
MOJO Watch
Near term sales trend is very positive

Net Sales (CNY MM)

Interest Coverage Ratio
Highest at 2,960.74
in the last five periods
MOJO Watch
The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales
Highest at CNY 1,611.46 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit
Highest at CNY 288.88 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Debt-Equity Ratio
Lowest at 24.17 %
in the last five Semi-Annual periods
MOJO Watch
The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Profit
Higher at CNY 562.23 MM
than preceding 12 month period ended Jun 2026
MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Here's what is not working for Hubei Zhenhua Chemical Co. Ltd.

Interest
At CNY 21.48 MM has Grown at 9.15%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio
Lowest at 3.96 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 23.83% (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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