Jiangsu Changhai Composite Materials Co., Ltd. (300196) 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

Jiangsu Changhai Composite Materials Co., Ltd.

Why is Jiangsu Changhai Composite Materials Co., Ltd. ?

With ROE of 6.77%, it has a very attractive valuation with a 0.80 Price to Book Value

Over the past year, while the stock has generated a return of 11.43%, its profits have risen by 55% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 2.2

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Jiangsu Changhai Composite Materials Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Jiangsu Changhai Composite Materials Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangsu Changhai Composite Materials Co., Ltd.

-100.0%

0.72

42.65%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.40%

EBIT Growth (5y)

3.27%

EBIT to Interest (avg)

92.39

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

0.45

Tax Ratio

10.00%

Dividend Payout Ratio

29.58%

Pledged Shares

Institutional Holding

ROCE (avg)

12.17%

ROE (avg)

11.34%

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

0.80

EV to EBIT

12.92

EV to EBITDA

6.72

EV to Capital Employed

0.81

EV to Sales

1.40

PEG Ratio

0.21

Dividend Yield

2.18%

ROCE (Latest)

6.25%

ROE (Latest)

6.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

17What is working for the Company

NET SALES(Q)

Highest at CNY 758.91 MM

RAW MATERIAL COST(Y)

Fallen by -14% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 8.4%

PRE-TAX PROFIT(Q)

Highest at CNY 91.12 MM

NET PROFIT(Q)

Highest at CNY 83.27 MM

EPS(Q)

Highest at CNY 0.2

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 364.1 MM

INTEREST(HY)

At CNY 19.42 MM has Grown at 7.97%

DEBT-EQUITY RATIO (HY)

Highest at 4.33 %

INTEREST COVERAGE RATIO(Q)

Lowest at 847.9

OPERATING PROFIT(Q)

Lowest at CNY 81.93 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.8 %

Here's what is working for Jiangsu Changhai Composite Materials Co., Ltd.

Net Sales

Highest at CNY 758.91 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 91.12 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 83.27 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.2

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 8.4%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -14% (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 Changhai Composite Materials Co., Ltd.

Interest Coverage Ratio

Lowest at 847.9

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 19.42 MM has Grown at 7.97%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 4.33 % and Grown

In each half year 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

Operating Cash Flow

Lowest at CNY 364.1 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 81.93 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 10.8 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales