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

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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 5.65% and Operating profit at -162.58% 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

NET PROFIT(9M) At CNY -431.98 MM has Grown at -160.81%
INTEREST(9M) At CNY 11.28 MM has Grown at 145.7%
NET SALES(Q) At CNY 70.95 MM has Fallen at -56.56%

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 -34.06%, 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 14.77% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -34.06% returns

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 Garments & Apparels)

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

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nanjing Chemical Fibre Co., Ltd.

-34.06%

3.71

53.86%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.65%

EBIT Growth (5y)

-162.58%

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)

0.51

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

15.50

EV to EBIT

-10.88

EV to EBITDA

-12.16

EV to Capital Employed

9.99

EV to Sales

10.89

PEG Ratio

Dividend Yield

ROCE (Latest)

-91.83%

ROE (Latest)

-148.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

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

7What is working for the Company

NET SALES(HY)

At CNY 273.32 MM has Grown at 21.85%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.33%

DEBTORS TURNOVER RATIO(HY)

Highest at 4.05%

-27What is not working for the Company

NET PROFIT(9M)

At CNY -431.98 MM has Grown at -160.81%

INTEREST(9M)

At CNY 11.28 MM has Grown at 145.7%

NET SALES(Q)

At CNY 70.95 MM has Fallen at -56.56%

OPERATING CASH FLOW(Y)

Lowest at CNY -218.5 MM

ROCE(HY)

Lowest at -77.51%

DEBT-EQUITY RATIO (HY)

Highest at 102.34 %

RAW MATERIAL COST(Y)

Grown by 542.72% (YoY

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

Inventory Turnover Ratio

Highest at 4.33%

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 4.05%

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 Nanjing Chemical Fibre Co., Ltd.

Net Profit

At CNY -342.95 MM has Grown at -183.99%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 8.79 MM has Grown at 147.44%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 70.95 MM has Fallen at -56.56%

over average net sales of the previous four periods of CNY 163.34 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 102.34 % 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

Operating Cash Flow

Lowest at CNY -218.5 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 70.95 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Raw Material Cost

Grown by 542.72% (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