Jinhong Gas Co., Ltd. (688106) 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

Jinhong Gas Co., Ltd.

Why is Jinhong Gas Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 17.48% and Operating profit at -3.03% over the last 5 years

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

INTEREST(9M) At CNY 33.93 MM has Grown at 50.92%
ROCE(HY) Lowest at 5.31%
DEBT-EQUITY RATIO (HY) Highest at 50.81 %

With ROE of 4.21%, it has a very expensive valuation with a 2.99 Price to Book Value

Over the past year, while the stock has generated a return of -0.75%, its profits have fallen by -59.3%
At the current price, the company has a high dividend yield of 0.5

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 14.77% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -0.75% 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 Specialty Chemicals)

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

Is Jinhong Gas Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jinhong Gas Co., Ltd.

-100.0%

0.14

32.12%

China Shanghai Composite

15.19%

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)

17.48%

EBIT Growth (5y)

-3.03%

EBIT to Interest (avg)

16.20

Debt to EBITDA (avg)

0.94

Net Debt to Equity (avg)

0.50

Sales to Capital Employed (avg)

0.45

Tax Ratio

21.87%

Dividend Payout Ratio

59.52%

Pledged Shares

Institutional Holding

ROCE (avg)

8.88%

ROE (avg)

7.71%

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

2.99

EV to EBIT

59.35

EV to EBITDA

20.87

EV to Capital Employed

2.21

EV to Sales

4.36

PEG Ratio

Dividend Yield

0.52%

ROCE (Latest)

3.72%

ROE (Latest)

4.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

2What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 602.68 MM

-29What is not working for the Company

INTEREST(9M)

At CNY 33.93 MM has Grown at 50.92%

ROCE(HY)

Lowest at 5.31%

DEBT-EQUITY RATIO (HY)

Highest at 50.81 %

INTEREST COVERAGE RATIO(Q)

Lowest at 405.63

PRE-TAX PROFIT(Q)

At CNY 54.73 MM has Fallen at -41.08%

NET PROFIT(Q)

At CNY 43.74 MM has Fallen at -42.53%

RAW MATERIAL COST(Y)

Grown by 10.28% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 46.64 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.56 %

Here's what is working for Jinhong Gas Co., Ltd.

Operating Cash Flow

Highest at CNY 602.68 MM

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 Jinhong Gas Co., Ltd.

Interest

At CNY 22.58 MM has Grown at 39.67%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 405.63

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 54.73 MM has Fallen at -41.08%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 43.74 MM has Fallen at -42.53%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 50.81 % 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

Operating Profit

Lowest at CNY 46.64 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.56 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 10.28% (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