Innovation New Material Technology Co., Ltd. (600361) 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

Innovation New Material Technology Co., Ltd.

Why is Innovation New Material Technology 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 59.38% and Operating profit at 130.97% 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 7.49% signifying low profitability per unit of shareholders funds

Negative results in Sep 25

ROCE(HY) Lowest at 8.55%
INTEREST COVERAGE RATIO(Q) Lowest at 303.09
DEBTORS TURNOVER RATIO(HY) Lowest at 16.76 times

With ROE of 7.05%, it has a very expensive valuation with a 1.44 Price to Book Value

Over the past year, while the stock has generated a return of 21.15%, its profits have fallen by -25.4%
At the current price, the company has a high dividend yield of 2.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Innovation New Material Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Non - Ferrous Metals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Non - Ferrous Metals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Innovation New Material Technology Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Innovation New Material Technology Co., Ltd.

-4.22%

0.55

33.96%

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)

59.38%

EBIT Growth (5y)

130.97%

EBIT to Interest (avg)

2.50

Debt to EBITDA (avg)

1.82

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

4.20

Tax Ratio

23.16%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

8.45%

ROE (avg)

7.49%

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

1.44

EV to EBIT

16.05

EV to EBITDA

10.40

EV to Capital Employed

1.27

EV to Sales

0.27

PEG Ratio

Dividend Yield

2.08%

ROCE (Latest)

7.91%

ROE (Latest)

7.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,097.88 MM

RAW MATERIAL COST(Y)

Fallen by -37.99% (YoY

CASH AND EQV(HY)

Highest at CNY 14,353.77 MM

NET PROFIT(Q)

Highest at CNY 303.57 MM

EPS(Q)

Highest at CNY 0.09

-18What is not working for the Company

ROCE(HY)

Lowest at 8.55%

INTEREST COVERAGE RATIO(Q)

Lowest at 303.09

DEBTORS TURNOVER RATIO(HY)

Lowest at 16.76 times

INTEREST(Q)

Highest at CNY 147.14 MM

OPERATING PROFIT(Q)

Lowest at CNY 445.98 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.28 %

Here's what is working for Innovation New Material Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 1,097.88 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

Highest at CNY 303.57 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 303.57 MM has Grown at 57.49%

over average net sales of the previous four periods of CNY 192.76 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.09

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 14,353.77 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -37.99% (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 Innovation New Material Technology Co., Ltd.

Interest

At CNY 147.14 MM has Grown at 45.1%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 303.09

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 147.14 MM

in the last five periods and Increased by 45.1% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 445.98 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.28 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 16.76 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio