Jiangsu Changqing Agrichemical Co., Ltd. (002391) 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 Changqing Agrichemical Co., Ltd.

Why is Jiangsu Changqing Agrichemical Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.24%

The company has been able to generate a Return on Capital Employed (avg) of 3.24% 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 3.72% and Operating profit at -13.20% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 3.27% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.72% and Operating profit at -13.20% over the last 5 years

With a growth in Net Sales of 39%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 756.13 MM
ROCE(HY) Highest at 1.28%
RAW MATERIAL COST(Y) Fallen by -25.17% (YoY)

With ROE of 1.31%, it has a expensive valuation with a 0.58 Price to Book Value

Over the past year, while the stock has generated a return of -11.53%, its profits have risen by 150.5% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Jiangsu Changqing Agrichemical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

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

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

Is Jiangsu Changqing Agrichemical Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jiangsu Changqing Agrichemical Co., Ltd.

-13.3%

0.31

32.07%

China Shanghai Composite

20.18%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.72%

EBIT Growth (5y)

-13.20%

EBIT to Interest (avg)

4.62

Debt to EBITDA (avg)

6.50

Net Debt to Equity (avg)

0.73

Sales to Capital Employed (avg)

0.45

Tax Ratio

23.40%

Dividend Payout Ratio

308.64%

Pledged Shares

Institutional Holding

ROCE (avg)

3.24%

ROE (avg)

3.27%

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

0.58

EV to EBIT

51.78

EV to EBITDA

13.41

EV to Capital Employed

0.76

EV to Sales

1.52

PEG Ratio

0.30

Dividend Yield

ROCE (Latest)

1.47%

ROE (Latest)

1.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

24What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 756.13 MM

ROCE(HY)

Highest at 1.28%

RAW MATERIAL COST(Y)

Fallen by -25.17% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 33.6 MM

NET PROFIT(Q)

Highest at CNY 34.13 MM

EPS(Q)

Highest at CNY 0.05

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 247.55

CASH AND EQV(HY)

Lowest at CNY 1,288.63 MM

DEBT-EQUITY RATIO (HY)

Highest at 75.33 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.48 times

INTEREST(Q)

Highest at CNY 23.73 MM

OPERATING PROFIT(Q)

Lowest at CNY 58.75 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.89 %

Here's what is working for Jiangsu Changqing Agrichemical Co., Ltd.

Pre-Tax Profit

At CNY 33.6 MM has Grown at 411.41%

over average net sales of the previous four periods of CNY 6.57 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 34.13 MM has Grown at 253.45%

over average net sales of the previous four periods of CNY 9.66 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 756.13 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)

Pre-Tax Profit

Highest at CNY 33.6 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 34.13 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -25.17% (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 Changqing Agrichemical Co., Ltd.

Interest

At CNY 23.73 MM has Grown at 18.54%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 247.55

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 23.73 MM

in the last five periods and Increased by 18.54% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 58.75 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.89 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 1,288.63 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 75.33 %

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

Debtors Turnover Ratio

Lowest at 3.48 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio