Why is M-Grass Ecology & Environment Group Co. Ltd. ?
1
Poor Management Efficiency with a low ROCE of 2.76%
- The company has been able to generate a Return on Capital Employed (avg) of 2.76% signifying low profitability per unit of total capital (equity and debt)
2
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 1.83% and Operating profit at -16.27% 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 4.27% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 1.83% and Operating profit at -16.27% over the last 5 years
4
With a growth in Net Sales of 64.21%, the company declared Very Positive results in Sep 25
- NET PROFIT(HY) Higher at CNY 91.29 MM
- NET SALES(Q) At CNY 806.45 MM has Grown at 64.21%
- RAW MATERIAL COST(Y) Fallen by -23.32% (YoY)
5
With ROE of 1.45%, it has a fair valuation with a 1.57 Price to Book Value
- Over the past year, while the stock has generated a return of -27.02%, its profits have fallen by -51.5%
- At the current price, the company has a high dividend yield of 0.1
How much should you hold?
- Overall Portfolio exposure to M-Grass Ecology & Environment Group Co. Ltd. should be less than 10%
- Overall Portfolio exposure to Miscellaneous should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is M-Grass Ecology & Environment Group Co. Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
M-Grass Ecology & Environment Group Co. Ltd.
-23.99%
1.54
34.98%
China Shanghai Composite
13.33%
0.90
14.74%
Quality key factors
Factor
Value
Sales Growth (5y)
1.83%
EBIT Growth (5y)
-16.27%
EBIT to Interest (avg)
0.82
Debt to EBITDA (avg)
11.22
Net Debt to Equity (avg)
1.20
Sales to Capital Employed (avg)
0.19
Tax Ratio
74.25%
Dividend Payout Ratio
18.10%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.76%
ROE (avg)
4.27%
Valuation Key Factors 
Factor
Value
P/E Ratio
108
Industry P/E
Price to Book Value
1.57
EV to EBIT
119.21
EV to EBITDA
31.96
EV to Capital Employed
1.27
EV to Sales
5.19
PEG Ratio
NA
Dividend Yield
0.09%
ROCE (Latest)
1.06%
ROE (Latest)
1.45%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Movement
16What is working for the Company
NET PROFIT(HY)
Higher at CNY 91.29 MM
NET SALES(Q)
At CNY 806.45 MM has Grown at 64.21%
RAW MATERIAL COST(Y)
Fallen by -23.32% (YoY
CASH AND EQV(HY)
Highest at CNY 2,726.18 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 0.48 times
-4What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 42.45
OPERATING PROFIT(Q)
Lowest at CNY 28.57 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 3.54 %
Here's what is working for M-Grass Ecology & Environment Group Co. Ltd.
Net Sales
At CNY 806.45 MM has Grown at 64.21%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (CNY MM)
Net Profit
Higher at CNY 91.29 MM
than preceding 12 month period ended Sep 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (CNY MM)
Cash and Eqv
Highest at CNY 2,726.18 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 0.48 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -23.32% (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 M-Grass Ecology & Environment Group Co. Ltd.
Interest Coverage Ratio
Lowest at 42.45
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at CNY 28.57 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 3.54 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales






