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

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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 15.93% and Operating profit at 4.50% over the last 5 years

INTEREST(HY) At CNY 93.57 MM has Grown at 15.15%
INTEREST COVERAGE RATIO(Q) Lowest at 2,210.04
OPERATING PROFIT(Q) Lowest at CNY 1,042.41 MM

With ROE of 11.70%, it has a very attractive valuation with a 1.36 Price to Book Value

Over the past year, while the stock has generated a return of -9.13%, its profits have risen by 17.7% ; the PEG ratio of the company is 0.7
At the current price, the company has a high dividend yield of 2.9

Below par performance in long term as well as near term

Along with generating -9.13% 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 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?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

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

-3.78%

0.50

39.47%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.93%

EBIT Growth (5y)

4.50%

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)

0.68

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

1.36

EV to EBIT

12.88

EV to EBITDA

6.93

EV to Capital Employed

1.35

EV to Sales

1.50

PEG Ratio

0.65

Dividend Yield

2.91%

ROCE (Latest)

10.45%

ROE (Latest)

11.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

10What is working for the Company

NET SALES(HY)

At CNY 12,924.48 MM has Grown at 28.39%

RAW MATERIAL COST(Y)

Fallen by -15.66% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 1,090.59 MM

NET PROFIT(Q)

Highest at CNY 1,000.69 MM

EPS(Q)

Highest at CNY 0.12

-8What is not working for the Company

INTEREST(HY)

At CNY 93.57 MM has Grown at 15.15%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,210.04

OPERATING PROFIT(Q)

Lowest at CNY 1,042.41 MM

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

Net Sales

At CNY 12,924.48 MM has Grown at 28.39%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 1,090.59 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 1,090.59 MM has Grown at 60.05%

over average net sales of the previous four periods of CNY 681.43 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 1,000.69 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.12

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -15.66% (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 2,210.04 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 93.57 MM has Grown at 15.15%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 1,042.41 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)