Jiangsu Newamstar Packaging Machinery Co., Ltd. (300509) 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 Newamstar Packaging Machinery Co., Ltd.

Why is Jiangsu Newamstar Packaging Machinery Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 12.40% and Operating profit at 17.75% over the last 5 years

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at CNY 330.89 MM
NET PROFIT(HY) At CNY 65.95 MM has Grown at 57.53%
ROCE(HY) Highest at 19.77%

With ROE of 18.52%, it has a fair valuation with a 1.73 Price to Book Value

Over the past year, while the stock has generated a return of 14.12%, its profits have risen by 164% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 3.8

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Jiangsu Newamstar Packaging Machinery Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Jiangsu Newamstar Packaging Machinery Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangsu Newamstar Packaging Machinery Co., Ltd.

6.48%

2.04

47.75%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.40%

EBIT Growth (5y)

17.75%

EBIT to Interest (avg)

10.73

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

1.08

Tax Ratio

10.64%

Dividend Payout Ratio

38.40%

Pledged Shares

Institutional Holding

ROCE (avg)

11.05%

ROE (avg)

7.85%

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

1.73

EV to EBIT

4.92

EV to EBITDA

4.19

EV to Capital Employed

3.41

EV to Sales

0.55

PEG Ratio

0.06

Dividend Yield

3.76%

ROCE (Latest)

69.40%

ROE (Latest)

18.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 330.89 MM

NET PROFIT(HY)

At CNY 65.95 MM has Grown at 57.53%

ROCE(HY)

Highest at 19.77%

DEBT-EQUITY RATIO (HY)

Lowest at -69.86 %

RAW MATERIAL COST(Y)

Fallen by -23.01% (YoY

CASH AND EQV(HY)

Highest at CNY 1,965.34 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 0.77 times

DEBTORS TURNOVER RATIO(HY)

Highest at 7.13 times

NET SALES(Q)

At CNY 325.73 MM has Grown at 25%

-13What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,531.52

INTEREST(Q)

Highest at CNY 2.49 MM

Here's what is working for Jiangsu Newamstar Packaging Machinery Co., Ltd.

Operating Cash Flow

Highest at CNY 330.89 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 Profit

At CNY 65.95 MM has Grown at 57.53%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at -69.86 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Net Sales

At CNY 325.73 MM has Grown at 25%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 1,965.34 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 0.77 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 7.13 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -23.01% (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 Newamstar Packaging Machinery Co., Ltd.

Interest

At CNY 2.49 MM has Grown at 12.63%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,531.52

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 2.49 MM

in the last five periods and Increased by 12.63% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)