Jiangsu Huachang Chemical Co., Ltd. (002274) 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 Huachang Chemical Co., Ltd.

Why is Jiangsu Huachang Chemical Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 3.76% and Operating profit at -12.21% over the last 5 years

With a fall in Net Sales of -18.41%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CNY 558.69 MM
PRE-TAX PROFIT(Q) At CNY 23.54 MM has Fallen at -85.09%
NET PROFIT(Q) At CNY 26.37 MM has Fallen at -79.42%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -18.19%, its profits have fallen by -90.1%
At the current price, the company has a high dividend yield of 4.9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -18.19% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Chemicals & Petrochemicals)

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

Is Jiangsu Huachang Chemical Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jiangsu Huachang Chemical Co., Ltd.

-26.23%

-0.60

24.50%

China Shanghai Composite

14.77%

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)

3.76%

EBIT Growth (5y)

-12.21%

EBIT to Interest (avg)

39.36

Debt to EBITDA (avg)

0.43

Net Debt to Equity (avg)

-0.05

Sales to Capital Employed (avg)

1.26

Tax Ratio

24.94%

Dividend Payout Ratio

54.80%

Pledged Shares

Institutional Holding

ROCE (avg)

18.80%

ROE (avg)

16.38%

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

1.07

EV to EBIT

256.16

EV to EBITDA

12.54

EV to Capital Employed

1.06

EV to Sales

0.94

PEG Ratio

Dividend Yield

4.90%

ROCE (Latest)

0.41%

ROE (Latest)

1.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-36What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 558.69 MM

PRE-TAX PROFIT(Q)

At CNY 23.54 MM has Fallen at -85.09%

NET PROFIT(Q)

At CNY 26.37 MM has Fallen at -79.42%

ROCE(HY)

Lowest at 5.35%

INTEREST(Q)

At CNY 1.18 MM has Grown at inf%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,287.46

OPERATING PROFIT(Q)

Lowest at CNY 15.15 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.86 %

RAW MATERIAL COST(Y)

Grown by 69.84% (YoY

NET SALES(Q)

At CNY 1,765.05 MM has Fallen at -10.53%

Here's what is not working for Jiangsu Huachang Chemical Co., Ltd.

Pre-Tax Profit

At CNY 23.54 MM has Fallen at -85.09%

over average net sales of the previous four periods of CNY 157.86 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 26.37 MM has Fallen at -79.42%

over average net sales of the previous four periods of CNY 128.16 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 558.69 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)

Interest

At CNY 1.18 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,287.46

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 15.15 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.86 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Sales

At CNY 1,765.05 MM has Fallen at -10.53%

over average net sales of the previous four periods of CNY 1,972.85 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Raw Material Cost

Grown by 69.84% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at CNY 0.37 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income