Jiangsu Huachang Chemical Co., Ltd.

  • Market Cap: Mid Cap
  • Industry: Chemicals & Petrochemicals
  • ISIN: CNE100000CW5
CNY
6.32
-0.02 (-0.32%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Jiangsu Huachang Chemical Co., Ltd.

Why is Jiangsu Huachang Chemical Co., Ltd. ?

1
Poor long term growth as Net Sales has grown by an annual rate of 3.25% and Operating profit at -228.69% over the last 5 years
2
With a fall in PBT of -344.1%, the company declared Very Negative results in Sep 25
  • The company has declared negative results for the last 3 consecutive quarters
  • NET SALES(HY) At CNY 3,113.93 MM has Grown at -27.55%
  • OPERATING CASH FLOW(Y) Lowest at CNY 62.29 MM
  • ROCE(HY) Lowest at -0.31%
3
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 -23.52%, its profits have fallen by -90.1%
  • At the current price, the company has a high dividend yield of 4.8
4
Underperformed the market in the last 1 year
  • Even though the market (China Shanghai Composite) has generated returns of 15.17% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -23.52% returns
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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?

Medium Risk, Low Return

Absolute
Risk Adjusted
Volatility
Jiangsu Huachang Chemical Co., Ltd.
-23.86%
-0.64
28.33%
China Shanghai Composite
15.17%
1.02
14.86%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
3.25%
EBIT Growth (5y)
-228.69%
EBIT to Interest (avg)
39.36
Debt to EBITDA (avg)
0.43
Net Debt to Equity (avg)
-0.05
Sales to Capital Employed (avg)
1.23
Tax Ratio
24.94%
Dividend Payout Ratio
54.80%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
18.80%
ROE (avg)
16.38%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
73
Industry P/E
Price to Book Value
1.09
EV to EBIT
260.46
EV to EBITDA
12.75
EV to Capital Employed
1.08
EV to Sales
0.95
PEG Ratio
NA
Dividend Yield
4.81%
ROCE (Latest)
0.41%
ROE (Latest)
1.48%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Bullish
Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company
Icon
NO KEY POSITIVE TRIGGERS
-44What is not working for the Company
NET SALES(HY)

At CNY 3,113.93 MM has Grown at -27.55%

OPERATING CASH FLOW(Y)

Lowest at CNY 62.29 MM

ROCE(HY)

Lowest at -0.31%

DEBT-EQUITY RATIO (HY)

Highest at 5.27 %

RAW MATERIAL COST(Y)

Grown by 71.65% (YoY

CASH AND EQV(HY)

Lowest at CNY 950.11 MM

INTEREST(Q)

Highest at CNY 3.59 MM

OPERATING PROFIT(Q)

Lowest at CNY -53.27 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.19 %

PRE-TAX PROFIT(Q)

Lowest at CNY -48.88 MM

NET PROFIT(Q)

Lowest at CNY -27.25 MM

EPS(Q)

Lowest at CNY -0.02

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

Net Sales
At CNY 3,113.93 MM has Grown at -27.55%
Year on Year (YoY)
MOJO Watch
Near term sales trend is very negative

Net Sales (CNY MM)

Pre-Tax Profit
At CNY -48.88 MM has Fallen at -386.22%
over average net sales of the previous four periods of CNY 17.08 MM
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit
At CNY -27.25 MM has Fallen at -224.55%
over average net sales of the previous four periods of CNY 21.88 MM
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow
Lowest at CNY 62.29 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 3.59 MM has Grown at 87.12%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio
Highest at 5.27 % 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

Interest
Highest at CNY 3.59 MM
in the last five periods and Increased by 87.12% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit
Lowest at CNY -53.27 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin
Lowest at -3.19 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit
Lowest at CNY -48.88 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit
Lowest at CNY -27.25 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS
Lowest at CNY -0.02
in the last five periods
MOJO Watch
Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv
Lowest at CNY 950.11 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost
Grown by 71.65% (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