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

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 17.51% and Operating profit at -2.77% over the last 5 years

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

INTEREST(HY) At CNY 32.75 MM has Grown at 59.03%
ROCE(HY) Lowest at 3.43%
DEBT-EQUITY RATIO (HY) Highest at 71.61 %

With ROE of 4.21%, it has a very expensive valuation with a 3.03 Price to Book Value

Over the past year, while the stock has generated a return of 36.28%, its profits have fallen by -59.3%
At the current price, the company has a high dividend yield of 0.5

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?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jinhong Gas Co., Ltd.

123.06%

0.95

37.77%

China Shanghai Composite

18.97%

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)

15.95%

EBIT Growth (5y)

-2.48%

EBIT to Interest (avg)

16.20

Debt to EBITDA (avg)

0.94

Net Debt to Equity (avg)

0.50

Sales to Capital Employed (avg)

0.43

Tax Ratio

21.87%

Dividend Payout Ratio

90.42%

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

119

Industry P/E

Price to Book Value

3.68

EV to EBIT

78.72

EV to EBITDA

30.68

EV to Capital Employed

2.63

EV to Sales

5.34

PEG Ratio

Dividend Yield

0.95%

ROCE (Latest)

3.34%

ROE (Latest)

3.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -12.14% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.87 times

-36What is not working for the Company

ROCE(HY)

Lowest at 2.82%

INTEREST COVERAGE RATIO(Q)

Lowest at 149.62

CASH AND EQV(HY)

Lowest at CNY 2,119.21 MM

INTEREST(Q)

Highest at CNY 19.43 MM

OPERATING PROFIT(Q)

Lowest at CNY 29.08 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.38 %

PRE-TAX PROFIT(Q)

Lowest at CNY 15.2 MM

NET PROFIT(Q)

Lowest at CNY 4.66 MM

EPS(Q)

Lowest at CNY 0.01

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

Debtors Turnover Ratio

Highest at 3.87 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -12.14% (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 Jinhong Gas Co., Ltd.

Pre-Tax Profit

At CNY 15.2 MM has Fallen at -72.23%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 4.66 MM has Fallen at -89.35%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 19.43 MM has Grown at 11.36%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 149.62

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 19.43 MM

in the last five periods and Increased by 11.36% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 29.08 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.38 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 15.2 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 4.66 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 2,119.21 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents