Jiangsu Jiangnan Water Co., Ltd. (601199) 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 Jiangnan Water Co., Ltd.

Why is Jiangsu Jiangnan Water Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 10.09% and Operating profit at 2.51% over the last 5 years

INTEREST COVERAGE RATIO(Q) Lowest at 978.86
DEBTORS TURNOVER RATIO(HY) Lowest at 1.74 times
INTEREST(Q) Highest at CNY 8.89 MM

With ROE of 8.78%, it has a very attractive valuation with a 1.18 Price to Book Value

Over the past year, while the stock has generated a return of 17.64%, its profits have risen by 8.1% ; the PEG ratio of the company is 1.7
At the current price, the company has a high dividend yield of 2.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Jiangsu Jiangnan Water Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Utilities should be less than 30%

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

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

Is Jiangsu Jiangnan Water Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jiangsu Jiangnan Water Co., Ltd.

8.81%

0.64

22.58%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.09%

EBIT Growth (5y)

2.51%

EBIT to Interest (avg)

12.50

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

0.30

Tax Ratio

25.57%

Dividend Payout Ratio

30.25%

Pledged Shares

Institutional Holding

ROCE (avg)

10.65%

ROE (avg)

8.61%

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

1.18

EV to EBIT

18.65

EV to EBITDA

9.80

EV to Capital Employed

1.18

EV to Sales

3.57

PEG Ratio

1.66

Dividend Yield

2.32%

ROCE (Latest)

6.33%

ROE (Latest)

8.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -7.64% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 18.52 times

NET SALES(Q)

At CNY 432.42 MM has Grown at 17.69%

-8What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 978.86

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.74 times

INTEREST(Q)

Highest at CNY 8.89 MM

OPERATING PROFIT(Q)

Lowest at CNY 87.06 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 20.13 %

Here's what is working for Jiangsu Jiangnan Water Co., Ltd.

Net Sales

At CNY 432.42 MM has Grown at 17.69%

over average net sales of the previous four periods of CNY 367.42 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 18.52 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -7.64% (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 Jiangnan Water Co., Ltd.

Interest

At CNY 8.89 MM has Grown at 58.1%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 978.86

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 8.89 MM

in the last five periods and Increased by 58.1% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 87.06 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 20.13 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 1.74 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio