Jiangsu Zhengdan Chemical Industry Co., Ltd. (300641) 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 Zhengdan Chemical Industry Co., Ltd.

Why is Jiangsu Zhengdan Chemical Industry Co., Ltd. ?

With a fall in Net Sales of -19.08%, the company declared Very Negative results in Sep 25

The company has declared negative results in Jan 70 after 5 consecutive negative quarters
NET SALES(Q) Lowest at CNY 465.77 MM
RAW MATERIAL COST(Y) Grown by 66.3% (YoY)
OPERATING PROFIT(Q) Lowest at CNY 67.3 MM

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.17% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -26.85% returns

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 Chemicals & Petrochemicals)

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

Is Jiangsu Zhengdan Chemical Industry Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jiangsu Zhengdan Chemical Industry Co., Ltd.

-24.98%

-0.77

36.19%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.15%

EBIT Growth (5y)

109.63%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.51

Sales to Capital Employed (avg)

0.94

Tax Ratio

14.83%

Dividend Payout Ratio

29.83%

Pledged Shares

Institutional Holding

ROCE (avg)

25.70%

ROE (avg)

12.96%

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

3.55

EV to EBIT

5.62

EV to EBITDA

5.41

EV to Capital Employed

7.20

EV to Sales

2.78

PEG Ratio

0.02

Dividend Yield

4.21%

ROCE (Latest)

128.19%

ROE (Latest)

46.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,527.4 MM

CASH AND EQV(HY)

Highest at CNY 3,800.09 MM

DEBT-EQUITY RATIO (HY)

Lowest at -58.84 %

-29What is not working for the Company

NET SALES(Q)

Lowest at CNY 465.77 MM

RAW MATERIAL COST(Y)

Grown by 66.3% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 67.3 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 14.45 %

PRE-TAX PROFIT(Q)

Lowest at CNY 53.38 MM

NET PROFIT(Q)

Lowest at CNY 47.08 MM

EPS(Q)

Lowest at CNY 0.09

Here's what is working for Jiangsu Zhengdan Chemical Industry Co., Ltd.

Operating Cash Flow

Highest at CNY 1,527.4 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)

Cash and Eqv

Highest at CNY 3,800.09 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -58.84 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Jiangsu Zhengdan Chemical Industry Co., Ltd.

Net Sales

At CNY 465.77 MM has Fallen at -47.04%

over average net sales of the previous four periods of CNY 879.54 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 53.38 MM has Fallen at -88.12%

over average net sales of the previous four periods of CNY 449.35 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 47.08 MM has Fallen at -87.71%

over average net sales of the previous four periods of CNY 383.06 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 465.77 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 67.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 14.45 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 53.38 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 47.08 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 66.3% (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