Jiangxi Hongcheng Environment Co., Ltd. (600461) 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

Jiangxi Hongcheng Environment Co., Ltd.

Why is Jiangxi Hongcheng Environment Co., Ltd. ?

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 7.37% and Operating profit at 15.30% 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 14.91% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 7.37% and Operating profit at 15.30% over the last 5 years

Negative results in Mar 25

ROCE(HY) Lowest at 12.95%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.62%
INTEREST COVERAGE RATIO(Q) Lowest at 839.6

With ROE of 14.00%, it has a very expensive valuation with a 1.12 Price to Book Value

Over the past year, while the stock has generated a return of 7.34%, its profits have risen by 5.5% ; the PEG ratio of the company is 4.1
At the current price, the company has a high dividend yield of 4.8

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 Other Utilities)

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

Is Jiangxi Hongcheng Environment Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jiangxi Hongcheng Environment Co., Ltd.

7.34%

-0.88

18.65%

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)

7.37%

EBIT Growth (5y)

15.30%

EBIT to Interest (avg)

6.72

Debt to EBITDA (avg)

1.98

Net Debt to Equity (avg)

0.58

Sales to Capital Employed (avg)

0.48

Tax Ratio

18.23%

Dividend Payout Ratio

47.84%

Pledged Shares

Institutional Holding

ROCE (avg)

12.66%

ROE (avg)

14.91%

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

1.12

EV to EBIT

9.33

EV to EBITDA

5.80

EV to Capital Employed

1.08

EV to Sales

2.03

PEG Ratio

4.11

Dividend Yield

4.82%

ROCE (Latest)

11.53%

ROE (Latest)

14.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

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

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -9.39% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 58.28 %

INVENTORY TURNOVER RATIO(HY)

Highest at 16.68%

NET PROFIT(Q)

Highest at CNY 331.74 MM

EPS(Q)

Highest at CNY 0.26

-10What is not working for the Company

ROCE(HY)

Lowest at 12.95%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.62%

INTEREST COVERAGE RATIO(Q)

Lowest at 839.6

OPERATING PROFIT(Q)

Lowest at CNY 450.08 MM

NET SALES(Q)

Fallen at -11.06%

OPERATING PROFIT MARGIN(Q)

Lowest at 23.67 %

Here's what is working for Jiangxi Hongcheng Environment Co., Ltd.

Net Profit

Highest at CNY 331.74 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.26

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at 58.28 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 16.68%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -9.39% (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 Jiangxi Hongcheng Environment Co., Ltd.

Interest Coverage Ratio

Lowest at 839.6

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 450.08 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 2.62% and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Fallen at -11.06%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit Margin

Lowest at 23.67 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales