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 Profit of -62.36%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 3 consecutive quarters
The company has declared negative results in Sep 25 after 6 consecutive negative quarters
NET SALES(Q) At CNY 460.03 MM has Fallen at -19.36%
PRE-TAX PROFIT(Q) At CNY 73 MM has Fallen at -65%
NET PROFIT(Q) At CNY 62.85 MM has Fallen at -64.75%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 17.97% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -30.54% 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.

-30.54%

-1.05

40.96%

China Shanghai Composite

17.97%

1.33

13.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.56%

EBIT Growth (5y)

39.38%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.51

Sales to Capital Employed (avg)

0.91

Tax Ratio

14.83%

Dividend Payout Ratio

58.66%

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

2.12

EV to EBIT

12.12

EV to EBITDA

10.79

EV to Capital Employed

3.80

EV to Sales

2.62

PEG Ratio

Dividend Yield

2.12%

ROCE (Latest)

31.35%

ROE (Latest)

11.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

3What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -60.11 %

CASH AND EQV(HY)

Highest at CNY 3,999.73 MM

-29What is not working for the Company

NET SALES(Q)

At CNY 460.03 MM has Fallen at -19.36%

PRE-TAX PROFIT(Q)

At CNY 73 MM has Fallen at -65%

NET PROFIT(Q)

At CNY 62.85 MM has Fallen at -64.75%

RAW MATERIAL COST(Y)

Grown by 66.44% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.38 times

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

Debt-Equity Ratio

Lowest at -60.11 % 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

Cash and Eqv

Highest at CNY 3,999.73 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

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

Net Sales

At CNY 460.03 MM has Fallen at -19.36%

over average net sales of the previous four periods of CNY 570.46 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 73 MM has Fallen at -65%

over average net sales of the previous four periods of CNY 208.57 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 62.85 MM has Fallen at -64.75%

over average net sales of the previous four periods of CNY 178.3 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 3.38 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 66.44% (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