Minfeng Special Paper Co., Ltd. (600235) 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

Minfeng Special Paper Co., Ltd.

Why is Minfeng Special Paper Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.95%

The company has been able to generate a Return on Capital Employed (avg) of 2.95% 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 -2.07% and Operating profit at -17.36% 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 3.31% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -2.07% and Operating profit at -17.36% over the last 5 years

With a fall in Net Sales of -3.63%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 2 consecutive quarters
DEBT-EQUITY RATIO (HY) Highest at 75.81 %
DEBTORS TURNOVER RATIO(HY) Lowest at 3.35 times
CASH AND EQV(HY) Lowest at CNY 219.33 MM

With ROE of 2.56%, it has a expensive valuation with a 1.63 Price to Book Value

Over the past year, while the stock has generated a return of 19.15%, its profits have fallen by -51.5%
At the current price, the company has a high dividend yield of 0.2

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 Paper, Forest & Jute Products)

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

Is Minfeng Special Paper Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Minfeng Special Paper Co., Ltd.

-8.09%

1.89

25.88%

China Shanghai Composite

21.43%

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)

-2.69%

EBIT Growth (5y)

-39.10%

EBIT to Interest (avg)

2.78

Debt to EBITDA (avg)

5.36

Net Debt to Equity (avg)

0.75

Sales to Capital Employed (avg)

0.54

Tax Ratio

4.15%

Dividend Payout Ratio

32.33%

Pledged Shares

Institutional Holding

ROCE (avg)

2.95%

ROE (avg)

3.31%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

206

Industry P/E

Price to Book Value

1.36

EV to EBIT

475.25

EV to EBITDA

38.11

EV to Capital Employed

1.21

EV to Sales

2.52

PEG Ratio

Dividend Yield

0.26%

ROCE (Latest)

0.25%

ROE (Latest)

0.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

DEBTORS TURNOVER RATIO(HY)

Highest at 3.96 times

NET SALES(Q)

Highest at CNY 334.21 MM

-31What is not working for the Company

INTEREST(HY)

At CNY 15.04 MM has Grown at 91.16%

INTEREST COVERAGE RATIO(Q)

Lowest at 36.04

PRE-TAX PROFIT(Q)

At CNY -0.95 MM has Fallen at -127.07%

NET PROFIT(Q)

At CNY -1.22 MM has Fallen at -130.03%

ROCE(HY)

Lowest at 0.66%

RAW MATERIAL COST(Y)

Grown by 19.48% (YoY

CASH AND EQV(HY)

Lowest at CNY 233.05 MM

OPERATING PROFIT(Q)

Lowest at CNY 2.63 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.79 %

Here's what is working for Minfeng Special Paper Co., Ltd.

Net Sales

Highest at CNY 334.21 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 3.96 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Minfeng Special Paper Co., Ltd.

Interest

At CNY 15.04 MM has Grown at 91.16%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 36.04 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY -0.95 MM has Fallen at -127.07%

over average net sales of the previous four periods of CNY 3.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -1.22 MM has Fallen at -130.03%

over average net sales of the previous four periods of CNY 4.07 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 2.63 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.79 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 233.05 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 19.48% (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