Jiangsu Safety Group Co., Ltd. (603028) 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 Safety Group Co., Ltd.

Why is Jiangsu Safety Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.55%

The company has been able to generate a Return on Capital Employed (avg) of 3.55% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 20.76% and Operating profit at -267.82% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 3.56% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 20.76% and Operating profit at -267.82% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

NET PROFIT(HY) At CNY -89.38 MM has Grown at -591.54%
INTEREST(HY) At CNY 20.04 MM has Grown at 223.58%
ROCE(HY) Lowest at -29.35%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 3.85%, its profits have fallen by -767.7%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Jiangsu Safety Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

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

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

Is Jiangsu Safety Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangsu Safety Group Co., Ltd.

3.85%

0.68

44.62%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.76%

EBIT Growth (5y)

-267.82%

EBIT to Interest (avg)

3.10

Debt to EBITDA (avg)

5.76

Net Debt to Equity (avg)

1.64

Sales to Capital Employed (avg)

0.90

Tax Ratio

13.07%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.55%

ROE (avg)

3.56%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

4.25

EV to EBIT

-8.99

EV to EBITDA

-13.11

EV to Capital Employed

2.24

EV to Sales

1.84

PEG Ratio

Dividend Yield

ROCE (Latest)

-24.86%

ROE (Latest)

-63.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly 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

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

9What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -206.25% (YoY

NET SALES(Q)

At CNY 346.49 MM has Grown at 24.64%

OPERATING PROFIT(Q)

Highest at CNY -9.61 MM

PRE-TAX PROFIT(Q)

Highest at CNY -9.88 MM

NET PROFIT(Q)

Highest at CNY 1.07 MM

EPS(Q)

Highest at CNY 0

-22What is not working for the Company

NET PROFIT(HY)

At CNY -89.38 MM has Grown at -591.54%

INTEREST(HY)

At CNY 20.04 MM has Grown at 223.58%

ROCE(HY)

Lowest at -29.35%

DEBT-EQUITY RATIO (HY)

Highest at 166.77 %

Here's what is working for Jiangsu Safety Group Co., Ltd.

Net Profit

At CNY 1.07 MM has Grown at 117.64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 346.49 MM has Grown at 24.64%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY -9.61 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit

Highest at CNY -9.88 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY -9.88 MM has Grown at 62.55%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 1.07 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -206.25% (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 Safety Group Co., Ltd.

Interest

At CNY 20.04 MM has Grown at 223.58%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 166.77 % and Grown

In each half year 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