Jiangsu Huaxin New Material Co., Ltd. (300717) 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 Huaxin New Material Co., Ltd.

Why is Jiangsu Huaxin New Material Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.62% and Operating profit at 6.25% over the last 5 years

With a growth in Net Profit of 68.48%, the company declared Very Positive results in Sep 25

The company has declared positive results in Jan 70 after 3 consecutive negative quarters
OPERATING CASH FLOW(Y) Highest at CNY 61.39 MM
ROCE(HY) Highest at 8.07%
DIVIDEND PAYOUT RATIO(Y) Highest at 83.13%

With ROE of 7.27%, it has a expensive valuation with a 2.85 Price to Book Value

Over the past year, while the stock has generated a return of 34.05%, its profits have risen by 11% ; the PEG ratio of the company is 3.6
At the current price, the company has a high dividend yield of 1

Market Beating performance in long term as well as near term

Along with generating 34.05% 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 Huaxin New Material Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

Is Jiangsu Huaxin New Material Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangsu Huaxin New Material Co., Ltd.

29.05%

0.78

37.63%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.62%

EBIT Growth (5y)

6.25%

EBIT to Interest (avg)

38.01

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.05

Sales to Capital Employed (avg)

0.43

Tax Ratio

16.15%

Dividend Payout Ratio

40.63%

Pledged Shares

Institutional Holding

ROCE (avg)

6.83%

ROE (avg)

5.82%

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

2.85

EV to EBIT

39.25

EV to EBITDA

26.34

EV to Capital Employed

2.96

EV to Sales

5.99

PEG Ratio

3.58

Dividend Yield

1.01%

ROCE (Latest)

7.53%

ROE (Latest)

7.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly 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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 61.39 MM

ROCE(HY)

Highest at 8.07%

DIVIDEND PAYOUT RATIO(Y)

Highest at 83.13%

RAW MATERIAL COST(Y)

Fallen by -13.9% (YoY

CASH AND EQV(HY)

Highest at CNY 426.5 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.47 times

DIVIDEND PER SHARE(HY)

Highest at CNY 2.47

NET SALES(Q)

At CNY 88.98 MM has Grown at 27.25%

PRE-TAX PROFIT(Q)

At CNY 13.63 MM has Grown at 75.61%

NET PROFIT(Q)

At CNY 12.36 MM has Grown at 68.48%

-5What is not working for the Company

INTEREST(9M)

At CNY 0.91 MM has Grown at inf%

OPERATING PROFIT MARGIN(Q)

Lowest at 15.1 %

Here's what is working for Jiangsu Huaxin New Material Co., Ltd.

Operating Cash Flow

Highest at CNY 61.39 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)

Net Sales

At CNY 88.98 MM has Grown at 27.25%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 13.63 MM has Grown at 75.61%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 12.36 MM has Grown at 68.48%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 426.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 2.47 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at CNY 2.47

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 83.13%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -13.9% (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 Huaxin New Material Co., Ltd.

Interest

At CNY 0.91 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 15.1 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales