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

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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 3.16% and Operating profit at 2.94% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(9M) At CNY 0.57 MM has Grown at 1,596.69%
OPERATING CASH FLOW(Y) Lowest at CNY 51.56 MM
DEBT-EQUITY RATIO (HY) Highest at -5.49 %

With ROE of 7.27%, it has a expensive valuation with a 1.17 Price to Book Value

Over the past year, while the stock has generated a return of 35.24%, its profits have risen by 11% ; the PEG ratio of the company is 1.5
At the current price, the company has a high dividend yield of 2.5

Market Beating Performance

The stock has generated a return of 35.24% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

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.

17.8%

0.90

37.63%

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)

3.16%

EBIT Growth (5y)

2.94%

EBIT to Interest (avg)

38.01

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.05

Sales to Capital Employed (avg)

0.44

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

1.17

EV to EBIT

15.72

EV to EBITDA

10.55

EV to Capital Employed

1.18

EV to Sales

2.40

PEG Ratio

1.48

Dividend Yield

2.46%

ROCE (Latest)

7.53%

ROE (Latest)

7.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

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

7What is working for the Company

NET PROFIT(HY)

At CNY 32.06 MM has Grown at 47.51%

ROCE(HY)

Highest at 7.95%

RAW MATERIAL COST(Y)

Fallen by -11.65% (YoY

CASH AND EQV(HY)

Highest at CNY 386.66 MM

PRE-TAX PROFIT(Q)

At CNY 19.54 MM has Grown at 53.73%

-14What is not working for the Company

INTEREST(9M)

At CNY 0.57 MM has Grown at 1,596.69%

OPERATING CASH FLOW(Y)

Lowest at CNY 51.56 MM

DEBT-EQUITY RATIO (HY)

Highest at -5.49 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.6%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.15%

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

Net Profit

At CNY 32.06 MM has Grown at 47.51%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Pre-Tax Profit

At CNY 19.54 MM has Grown at 53.73%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 386.66 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -11.65% (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 0.57 MM has Grown at 3,117.85%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 51.56 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 -5.49 %

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

Inventory Turnover Ratio

Lowest at 3.6%

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 2.15%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio