Jiangsu Wujin Stainless Steel Pipe Group Co., Ltd. (603878) 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 Wujin Stainless Steel Pipe Group Co., Ltd.

Why is Jiangsu Wujin Stainless Steel Pipe Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -0.61% and Operating profit at -71.73% over the last 5 years

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

NET SALES(9M) At CNY 1,718.19 MM has Grown at -17.62%
NET PROFIT(HY) At CNY 57.84 MM has Grown at -44.75%
ROCE(HY) Lowest at 1.58%

With ROE of 2.05%, it has a very expensive valuation with a 1.94 Price to Book Value

Over the past year, while the stock has generated a return of 63.49%, its profits have fallen by -82.5%
At the current price, the company has a high dividend yield of 1

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Jiangsu Wujin Stainless Steel Pipe Group Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jiangsu Wujin Stainless Steel Pipe Group Co., Ltd.

27.4%

0.14

50.85%

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)

-0.61%

EBIT Growth (5y)

-71.73%

EBIT to Interest (avg)

24.66

Debt to EBITDA (avg)

0.49

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

0.83

Tax Ratio

7.26%

Dividend Payout Ratio

39.86%

Pledged Shares

Institutional Holding

ROCE (avg)

8.94%

ROE (avg)

7.94%

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

1.94

EV to EBIT

244.42

EV to EBITDA

44.20

EV to Capital Employed

1.84

EV to Sales

2.42

PEG Ratio

Dividend Yield

1.00%

ROCE (Latest)

0.75%

ROE (Latest)

2.05%

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

Bearish

Bullish

Dow Theory

Mildly Bearish

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

OPERATING CASH FLOW(Y)

Highest at CNY 557.36 MM

-18What is not working for the Company

NET SALES(9M)

At CNY 1,718.19 MM has Grown at -17.62%

NET PROFIT(HY)

At CNY 57.84 MM has Grown at -44.75%

ROCE(HY)

Lowest at 1.58%

INTEREST(Q)

At CNY 3.78 MM has Grown at 19.8%

RAW MATERIAL COST(Y)

Grown by 25.57% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.62 times

Here's what is working for Jiangsu Wujin Stainless Steel Pipe Group Co., Ltd.

Operating Cash Flow

Highest at CNY 557.36 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)

Here's what is not working for Jiangsu Wujin Stainless Steel Pipe Group Co., Ltd.

Net Profit

At CNY 57.84 MM has Grown at -44.75%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 1,718.19 MM has Grown at -17.62%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 3.78 MM has Grown at 19.8%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 2.62 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 25.57% (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

Non Operating Income

Highest at CNY 0.99 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income