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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Jiangsu Changhai Composite Materials Co., Ltd.

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

Poor long term growth as Net Sales has grown by an annual rate of 9.05% and Operating profit at 3.66% over the last 5 years

Negative results in Mar 26

INTEREST(HY) At CNY 28.91 MM has Grown at 48.87%
OPERATING CASH FLOW(Y) Lowest at CNY 136.12 MM
DEBT-EQUITY RATIO (HY) Highest at 6.27 %

With ROE of 6.77%, it has a very attractive valuation with a 1.67 Price to Book Value

Over the past year, while the stock has generated a return of 68.76%, its profits have risen by 53.5% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 1.5

Market Beating performance in long term as well as near term

Along with generating 68.76% returns in the last 1 year, the stock has outperformed 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 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.

68.76%

1.56

50.91%

China Shanghai Composite

21.68%

1.63

13.30%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.05%

EBIT Growth (5y)

3.66%

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)

0.44

Tax Ratio

10.00%

Dividend Payout Ratio

55.63%

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

1.67

EV to EBIT

24.98

EV to EBITDA

14.74

EV to Capital Employed

1.63

EV to Sales

2.64

PEG Ratio

0.46

Dividend Yield

1.55%

ROCE (Latest)

6.53%

ROE (Latest)

6.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -23.71% (YoY

-13What is not working for the Company

INTEREST(HY)

At CNY 28.91 MM has Grown at 48.87%

OPERATING CASH FLOW(Y)

Lowest at CNY 136.12 MM

DEBT-EQUITY RATIO (HY)

Highest at 6.27 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.3 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.39 times

OPERATING PROFIT(Q)

Lowest at CNY 90.72 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.36 %

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

Raw Material Cost

Fallen by -23.71% (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

At CNY 28.91 MM has Grown at 48.87%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 136.12 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 6.27 % 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 Profit

Lowest at CNY 90.72 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 12.36 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 7.3 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 2.39 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio