Inner Mongolia Junzheng Energy & Chemical Group Co., Ltd. (601216) 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

Inner Mongolia Junzheng Energy & Chemical Group Co., Ltd.

Why is Inner Mongolia Junzheng Energy & Chemical Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 12.55% and Operating profit at 3.61% over the last 5 years

INTEREST(HY) At CNY 106.65 MM has Grown at 6.39%
INTEREST COVERAGE RATIO(Q) Lowest at 1,653.3
NET SALES(Q) Lowest at CNY 6,030.38 MM

With ROE of 11.70%, it has a very attractive valuation with a 1.58 Price to Book Value

Over the past year, while the stock has generated a return of 4.01%, its profits have risen by 17.7% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 2.5

Underperformed the market in the last 1 year

The stock has generated a return of 4.01% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Inner Mongolia Junzheng Energy & Chemical Group 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 Inner Mongolia Junzheng Energy & Chemical Group Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Inner Mongolia Junzheng Energy & Chemical Group Co., Ltd.

-2.5%

1.54

32.05%

China Shanghai Composite

15.45%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.55%

EBIT Growth (5y)

3.61%

EBIT to Interest (avg)

14.71

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

0.69

Tax Ratio

11.94%

Dividend Payout Ratio

45.14%

Pledged Shares

Institutional Holding

ROCE (avg)

14.46%

ROE (avg)

15.70%

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

1.58

EV to EBIT

14.97

EV to EBITDA

8.05

EV to Capital Employed

1.56

EV to Sales

1.75

PEG Ratio

0.76

Dividend Yield

2.49%

ROCE (Latest)

10.45%

ROE (Latest)

11.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 5,212.5 MM

RAW MATERIAL COST(Y)

Fallen by -31.5% (YoY

-10What is not working for the Company

INTEREST(HY)

At CNY 106.65 MM has Grown at 6.39%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,653.3

NET SALES(Q)

Lowest at CNY 6,030.38 MM

OPERATING PROFIT(Q)

Lowest at CNY 836.4 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.87 %

Here's what is working for Inner Mongolia Junzheng Energy & Chemical Group Co., Ltd.

Operating Cash Flow

Highest at CNY 5,212.5 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -31.5% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Inner Mongolia Junzheng Energy & Chemical Group Co., Ltd.

Interest Coverage Ratio

Lowest at 1,653.3

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 106.65 MM has Grown at 6.39%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 6,030.38 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 836.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 13.87 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales