Jiangsu Jiuwu Hi-Tech Co., Ltd. (300631) 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 Jiuwu Hi-Tech Co., Ltd.

Why is Jiangsu Jiuwu Hi-Tech Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.66%

The company has been able to generate a Return on Capital Employed (avg) of 4.66% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 4.64% and Operating profit at -14.51% over the last 5 years

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 222.05 MM
NET SALES(Q) At CNY 126.44 MM has Grown at 46.29%
CASH AND EQV(HY) Highest at CNY 897.63 MM

With ROE of 5.26%, it has a expensive valuation with a 2.05 Price to Book Value

Over the past year, while the stock has generated a return of -2.81%, its profits have risen by 28.9% ; the PEG ratio of the company is 1.4
At the current price, the company has a high dividend yield of 1.8

Below par performance in long term as well as near term

Along with generating -2.81% returns in the last 1 year, the stock has also underperformed 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 Jiuwu Hi-Tech 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 Jiuwu Hi-Tech Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Jiangsu Jiuwu Hi-Tech Co., Ltd.

-2.81%

0.26

55.63%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.64%

EBIT Growth (5y)

-14.51%

EBIT to Interest (avg)

10.62

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

0.45

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

41.58%

Pledged Shares

Institutional Holding

ROCE (avg)

4.66%

ROE (avg)

6.19%

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

2.05

EV to EBIT

50.98

EV to EBITDA

30.70

EV to Capital Employed

2.42

EV to Sales

3.61

PEG Ratio

1.35

Dividend Yield

1.82%

ROCE (Latest)

4.74%

ROE (Latest)

5.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 222.05 MM

NET SALES(Q)

At CNY 126.44 MM has Grown at 46.29%

CASH AND EQV(HY)

Highest at CNY 897.63 MM

DEBT-EQUITY RATIO (HY)

Lowest at -25.06 %

DEBTORS TURNOVER RATIO(HY)

Highest at 1.05 times

-2What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 12.32% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 8.69 %

Here's what is working for Jiangsu Jiuwu Hi-Tech Co., Ltd.

Net Sales

At CNY 126.44 MM has Grown at 46.29%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 222.05 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 897.63 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -25.06 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 1.05 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Jiangsu Jiuwu Hi-Tech Co., Ltd.

Operating Profit Margin

Lowest at 8.69 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 12.32% (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