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 Management Efficiency with a low ROCE of 8.88%

The company has been able to generate a Return on Capital Employed (avg) of 8.88% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 15.95% and Operating profit at -2.48% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 7.71% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 15.95% and Operating profit at -2.48% over the last 5 years

Flat results in Jun 26

INTEREST(HY) At CNY 33.73 MM has Grown at 12.02%
ROCE(HY) Lowest at 3.32%
RAW MATERIAL COST(Y) Grown by 16.03% (YoY)

With ROE of 3.09%, it has a very expensive valuation with a 5.31 Price to Book Value

Over the past year, while the stock has generated a return of 45.37%, its profits have fallen by -38.8%
At the current price, the company has a high dividend yield of 0.7

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.

36.07%

0.69

75.98%

China Shanghai Composite

0.9%

0.22

14.72%

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)

10.46

Debt to EBITDA (avg)

1.73

Net Debt to Equity (avg)

0.50

Sales to Capital Employed (avg)

0.43

Tax Ratio

20.65%

Dividend Payout Ratio

90.42%

Pledged Shares

Institutional Holding

ROCE (avg)

6.61%

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

172

Industry P/E

Price to Book Value

5.31

EV to EBIT

108.37

EV to EBITDA

42.23

EV to Capital Employed

3.62

EV to Sales

7.35

PEG Ratio

Dividend Yield

0.66%

ROCE (Latest)

3.34%

ROE (Latest)

3.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 576.42 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 15.27 times

NET SALES(Q)

Highest at CNY 810.07 MM

PRE-TAX PROFIT(Q)

Highest at CNY 80.12 MM

NET PROFIT(Q)

Highest at CNY 62.61 MM

EPS(Q)

Highest at CNY 0.12

-12What is not working for the Company

INTEREST(HY)

At CNY 33.73 MM has Grown at 12.02%

ROCE(HY)

Lowest at 3.32%

RAW MATERIAL COST(Y)

Grown by 16.03% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.97 times

OPERATING PROFIT MARGIN(Q)

Lowest at 18.11 %

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

Operating Cash Flow

Highest at CNY 576.42 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 810.07 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 80.12 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 62.61 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 62.61 MM has Grown at 67%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.12

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 15.27 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Jinhong Gas Co., Ltd.

Interest

At CNY 33.73 MM has Grown at 12.02%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 18.11 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 2.97 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 16.03% (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

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