JinJian Cereals Industry Co., Ltd. (600127) 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

JinJian Cereals Industry Co., Ltd.

Why is JinJian Cereals Industry Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.80%

The company has been able to generate a Return on Capital Employed (avg) of 0.80% signifying low profitability per unit of total capital (equity and debt)

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 -5.25% and Operating profit at -194.78% 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 1.73% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -5.25% and Operating profit at -194.78% over the last 5 years

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

NET SALES(Q) At CNY 799.25 MM has Fallen at -26.21%
PRE-TAX PROFIT(Q) At CNY 1.16 MM has Fallen at -69.38%
NET PROFIT(Q) At CNY 0.88 MM has Fallen at -64.21%

With ROE of 1.14%, it has a very expensive valuation with a 6.29 Price to Book Value

Over the past year, while the stock has generated a return of 8.56%, its profits have fallen by -46%

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 FMCG)

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

Is JinJian Cereals Industry Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

JinJian Cereals Industry Co., Ltd.

2.3%

0.57

26.03%

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)

-5.25%

EBIT Growth (5y)

-194.78%

EBIT to Interest (avg)

-0.05

Debt to EBITDA (avg)

12.89

Net Debt to Equity (avg)

0.96

Sales to Capital Employed (avg)

3.37

Tax Ratio

30.01%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.80%

ROE (avg)

1.73%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

550

Industry P/E

Price to Book Value

6.29

EV to EBIT

-604.34

EV to EBITDA

93.52

EV to Capital Employed

4.02

EV to Sales

1.13

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.67%

ROE (Latest)

1.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

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

12What is working for the Company

NET PROFIT(HY)

At CNY 3.24 MM has Grown at 188.54%

OPERATING CASH FLOW(Y)

Highest at CNY 142.9 MM

RAW MATERIAL COST(Y)

Fallen by -86.47% (YoY

-21What is not working for the Company

NET SALES(Q)

At CNY 799.25 MM has Fallen at -26.21%

PRE-TAX PROFIT(Q)

At CNY 1.16 MM has Fallen at -69.38%

NET PROFIT(Q)

At CNY 0.88 MM has Fallen at -64.21%

DEBTORS TURNOVER RATIO(HY)

Lowest at 42.82 times

OPERATING PROFIT(Q)

Lowest at CNY -5.89 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.74 %

Here's what is working for JinJian Cereals Industry Co., Ltd.

Operating Cash Flow

Highest at CNY 142.9 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -86.47% (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 JinJian Cereals Industry Co., Ltd.

Net Sales

At CNY 799.25 MM has Fallen at -26.21%

over average net sales of the previous four periods of CNY 1,083.15 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 1.16 MM has Fallen at -69.38%

over average net sales of the previous four periods of CNY 3.79 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 0.88 MM has Fallen at -64.21%

over average net sales of the previous four periods of CNY 2.46 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -5.89 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -0.74 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 42.82 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at CNY 5.85 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income