Jiangsu Canlon Building Materials Co., Ltd. (300715) 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

Jiangsu Canlon Building Materials Co., Ltd.

Why is Jiangsu Canlon Building Materials Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.90%

The company has been able to generate a Return on Capital Employed (avg) of 2.90% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 6.12% and Operating profit at -211.28% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.60% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.12% and Operating profit at -211.28% over the last 5 years

With a growth in Net Profit of 118.94%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 4 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 306 MM
PRE-TAX PROFIT(Q) At CNY 22.7 MM has Grown at 306.64%
ROCE(HY) Highest at 1.59%

With ROE of -24.62%, it has a risky valuation with a 2.79 Price to Book Value

Over the past year, while the stock has generated a return of 96.02%, its profits have fallen by -429.2%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Jiangsu Canlon Building Materials Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Industrial Products)

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

Is Jiangsu Canlon Building Materials Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangsu Canlon Building Materials Co., Ltd.

96.02%

2.86

51.61%

China Shanghai Composite

20.36%

1.53

13.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.12%

EBIT Growth (5y)

-211.28%

EBIT to Interest (avg)

-0.58

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.75

Sales to Capital Employed (avg)

0.57

Tax Ratio

16.31%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.90%

ROE (avg)

4.60%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.79

EV to EBIT

-13.08

EV to EBITDA

-16.11

EV to Capital Employed

1.93

EV to Sales

2.90

PEG Ratio

Dividend Yield

ROCE (Latest)

-14.76%

ROE (Latest)

-24.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

21What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 306 MM

PRE-TAX PROFIT(Q)

At CNY 22.7 MM has Grown at 306.64%

ROCE(HY)

Highest at 1.59%

NET PROFIT(Q)

At CNY 14.31 MM has Grown at 118.36%

RAW MATERIAL COST(Y)

Fallen by -73.48% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 1.32 times

-5What is not working for the Company

INTEREST(Q)

Highest at CNY 13.48 MM

Here's what is working for Jiangsu Canlon Building Materials Co., Ltd.

Pre-Tax Profit

At CNY 22.7 MM has Grown at 306.64%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Highest at CNY 306 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

At CNY 14.31 MM has Grown at 118.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Debtors Turnover Ratio

Highest at 1.32 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -73.48% (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 Jiangsu Canlon Building Materials Co., Ltd.

Interest

At CNY 13.48 MM has Grown at 21.84%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 13.48 MM

in the last five periods and Increased by 21.84% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)