Nanjing Chemical Fibre Co., Ltd. (600889) 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

Nanjing Chemical Fibre Co., Ltd.

Why is Nanjing Chemical Fibre Co., Ltd. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -0.75% and Operating profit at -28.15% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared Negative results for the last 7 consecutive quarters

INTEREST(HY) At CNY 9.26 MM has Grown at 78.41%
RAW MATERIAL COST(Y) Grown by 81.17% (YoY)
CASH AND EQV(HY) Lowest at CNY 74 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -8.20%, its profits have fallen by -102.3%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -8.20% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nanjing Chemical Fibre Co., Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

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

Is Nanjing Chemical Fibre Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nanjing Chemical Fibre Co., Ltd.

7.2%

6.17

38.92%

China Shanghai Composite

23.91%

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)

1.68%

EBIT Growth (5y)

2.36%

EBIT to Interest (avg)

-71.81

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

1.02

Sales to Capital Employed (avg)

0.50

Tax Ratio

0.06%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

2.17%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

4.67

EV to EBIT

-45.42

EV to EBITDA

-83.97

EV to Capital Employed

4.40

EV to Sales

11.19

PEG Ratio

Dividend Yield

ROCE (Latest)

-9.69%

ROE (Latest)

-3.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

31What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 41.13 MM

ROCE(HY)

Highest at -4.64%

PRE-TAX PROFIT(Q)

At CNY 14.07 MM has Grown at 151.97%

NET PROFIT(Q)

At CNY 12.15 MM has Grown at 148.63%

RAW MATERIAL COST(Y)

Fallen by -276.28% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 9.38 %

NET SALES(Q)

Highest at CNY 247.15 MM

OPERATING PROFIT(Q)

Highest at CNY 5.14 MM

OPERATING PROFIT MARGIN(Q)

Highest at 2.08 %

-2What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.36 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.05 times

Here's what is working for Nanjing Chemical Fibre Co., Ltd.

Net Sales

At CNY 247.15 MM has Grown at 228.96%

over average net sales of the previous four periods of CNY 75.13 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 14.07 MM has Grown at 151.97%

over average net sales of the previous four periods of CNY -27.07 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 12.15 MM has Grown at 148.63%

over average net sales of the previous four periods of CNY -24.99 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 41.13 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 247.15 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 5.14 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 2.08 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Debt-Equity Ratio

Lowest at 9.38 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -276.28% (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 Nanjing Chemical Fibre Co., Ltd.

Inventory Turnover Ratio

Lowest at 2.36 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 2.05 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio