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.

52.15%

0.95

37.77%

China Shanghai Composite

15.17%

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)

17.51%

EBIT Growth (5y)

-2.77%

EBIT to Interest (avg)

16.20

Debt to EBITDA (avg)

0.94

Net Debt to Equity (avg)

0.50

Sales to Capital Employed (avg)

0.44

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

3.03

EV to EBIT

60.09

EV to EBITDA

21.13

EV to Capital Employed

2.24

EV to Sales

4.42

PEG Ratio

Dividend Yield

0.52%

ROCE (Latest)

3.72%

ROE (Latest)

4.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 574.14 MM

RAW MATERIAL COST(Y)

Fallen by -12.67% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.69 times

NET SALES(Q)

Highest at CNY 717.02 MM

-27What is not working for the Company

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 %

INTEREST COVERAGE RATIO(Q)

Lowest at 417.2

CASH AND EQV(HY)

Lowest at CNY 2,566.66 MM

OPERATING PROFIT(Q)

Lowest at CNY 58.98 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.23 %

PRE-TAX PROFIT(Q)

Fallen at -30.55%

NET PROFIT(Q)

Fallen at -33.39%

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

Operating Cash Flow

Highest at CNY 574.14 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)

Net Sales

Highest at CNY 717.02 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 3.69 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 -12.67% (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.

Interest

At CNY 32.75 MM has Grown at 59.03%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 417.2

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 71.61 % 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 58.98 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.23 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -30.55%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -33.39%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Cash and Eqv

Lowest at CNY 2,566.66 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents