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.

3.9%

1.89

25.88%

China Shanghai Composite

13.33%

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)

-2.07%

EBIT Growth (5y)

-17.36%

EBIT to Interest (avg)

2.78

Debt to EBITDA (avg)

5.36

Net Debt to Equity (avg)

0.75

Sales to Capital Employed (avg)

0.60

Tax Ratio

4.15%

Dividend Payout Ratio

30.24%

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

Industry P/E

Price to Book Value

1.63

EV to EBIT

81.19

EV to EBITDA

29.38

EV to Capital Employed

1.36

EV to Sales

2.84

PEG Ratio

Dividend Yield

0.24%

ROCE (Latest)

1.68%

ROE (Latest)

2.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

OBV

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -16.2% (YoY

-46What is not working for the Company

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

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.53 times

NET SALES(Q)

Lowest at CNY 287.27 MM

INTEREST(Q)

Highest at CNY 8.07 MM

OPERATING PROFIT(Q)

Lowest at CNY 0.35 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.12 %

PRE-TAX PROFIT(Q)

Lowest at CNY 3.59 MM

NET PROFIT(Q)

Lowest at CNY 3.57 MM

EPS(Q)

Lowest at CNY 0.01

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

Raw Material Cost

Fallen by -16.2% (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 Minfeng Special Paper Co., Ltd.

Pre-Tax Profit

At CNY 3.59 MM has Fallen at -64.67%

over average net sales of the previous four periods of CNY 10.16 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 3.57 MM has Fallen at -63.07%

over average net sales of the previous four periods of CNY 9.66 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 8.07 MM has Grown at 35.34%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 75.81 % 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

Debtors Turnover Ratio

Lowest at 3.35 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at CNY 287.27 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 287.27 MM has Fallen at -9.62%

over average net sales of the previous four periods of CNY 317.87 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 8.07 MM

in the last five periods and Increased by 35.34% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 0.35 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.12 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 3.59 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 3.57 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 219.33 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 2.53 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at CNY 3.15 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income