Nanfang Zhongjin Environment Co., Ltd. (300145) 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

Nanfang Zhongjin Environment Co., Ltd.

Why is Nanfang Zhongjin Environment Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 3.07% and Operating profit at 16.26% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.82% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.07% and Operating profit at 16.26% over the last 5 years

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 602.16 MM
RAW MATERIAL COST(Y) Grown by 5.77% (YoY)

With ROE of 10.16%, it has a very attractive valuation with a 2.38 Price to Book Value

Over the past year, while the stock has generated a return of 67.55%, its profits have risen by 35.4% ; the PEG ratio of the company is 0.7

Market Beating performance in long term as well as near term

Along with generating 67.55% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nanfang Zhongjin Environment Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Nanfang Zhongjin Environment Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nanfang Zhongjin Environment Co., Ltd.

67.55%

2.07

53.62%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.07%

EBIT Growth (5y)

16.26%

EBIT to Interest (avg)

-3.01

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

1.06

Tax Ratio

24.45%

Dividend Payout Ratio

40.45%

Pledged Shares

Institutional Holding

ROCE (avg)

3.88%

ROE (avg)

4.82%

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

2.38

EV to EBIT

34.22

EV to EBITDA

20.38

EV to Capital Employed

2.16

EV to Sales

1.43

PEG Ratio

0.66

Dividend Yield

ROCE (Latest)

6.31%

ROE (Latest)

10.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

3What is working for the Company

CASH AND EQV(HY)

Highest at CNY 2,749.01 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.79 times

DEBTORS TURNOVER RATIO(HY)

Highest at 1.79 times

-3What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 602.16 MM

RAW MATERIAL COST(Y)

Grown by 5.77% (YoY

Here's what is working for Nanfang Zhongjin Environment Co., Ltd.

Cash and Eqv

Highest at CNY 2,749.01 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.79 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 1.79 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 Nanfang Zhongjin Environment Co., Ltd.

Operating Cash Flow

Lowest at CNY 602.16 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Raw Material Cost

Grown by 5.77% (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