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 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 Non - Ferrous Metals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

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

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Innovation New Material Technology Co., Ltd.

-2.33%

0.55

33.96%

China Shanghai Composite

19.22%

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)

56.71%

EBIT Growth (5y)

73.62%

EBIT to Interest (avg)

2.50

Debt to EBITDA (avg)

1.82

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

3.48

Tax Ratio

23.16%

Dividend Payout Ratio

43.74%

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

1.33

EV to EBIT

18.55

EV to EBITDA

12.88

EV to Capital Employed

1.18

EV to Sales

0.31

PEG Ratio

Dividend Yield

2.14%

ROCE (Latest)

6.36%

ROE (Latest)

6.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

RAW MATERIAL COST(Y)

Fallen by -32.7% (YoY

CASH AND EQV(HY)

Highest at CNY 14,749.51 MM

NET SALES(Q)

Highest at CNY 20,246.26 MM

-12What is not working for the Company

NET PROFIT(HY)

At CNY 328 MM has Grown at -23.13%

ROCE(HY)

Lowest at 7.54%

INTEREST(Q)

At CNY 116.27 MM has Grown at 17.57%

INTEREST COVERAGE RATIO(Q)

Lowest at 350.74

DEBT-EQUITY RATIO (HY)

Highest at 82.97 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 15.01 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 14.03 times

OPERATING PROFIT MARGIN(Q)

Lowest at 2.01 %

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

Net Sales

Highest at CNY 20,246.26 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 14,749.51 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -32.7% (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 116.27 MM has Grown at 17.57%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 350.74

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 328 MM has Grown at -23.13%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Operating Profit Margin

Lowest at 2.01 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 82.97 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 15.01 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 14.03 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio