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 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.

-17.62%

6.17

38.92%

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)

-0.75%

EBIT Growth (5y)

-28.15%

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

18.38

EV to EBIT

-12.83

EV to EBITDA

-14.34

EV to Capital Employed

11.78

EV to Sales

12.83

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

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

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

15What is working for the Company

PRE-TAX PROFIT(Q)

Highest at CNY 34.48 MM

NET PROFIT(Q)

Highest at CNY 36.87 MM

EPS(Q)

Highest at CNY 0.1

-23What is not working for the Company

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

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.47 times

NET SALES(Q)

Lowest at CNY 37.34 MM

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

Pre-Tax Profit

At CNY 34.48 MM has Grown at 127.72%

over average net sales of the previous four periods of CNY -124.38 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 36.87 MM has Grown at 131.54%

over average net sales of the previous four periods of CNY -116.92 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 34.48 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 36.87 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Nanjing Chemical Fibre Co., Ltd.

Interest

At CNY 9.26 MM has Grown at 78.41%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 37.34 MM has Fallen at -70.31%

over average net sales of the previous four periods of CNY 125.75 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 37.34 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 74 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 2.47 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 81.17% (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