NanJing Sanchao Advanced Materials Co., Ltd. (300554) 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 Sanchao Advanced Materials Co., Ltd.

Why is NanJing Sanchao Advanced Materials Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.78%

The company has been able to generate a Return on Capital Employed (avg) of 1.78% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -2.37% and Operating profit at -235.66% over the last 5 years

Flat results in Mar 26

NET PROFIT(HY) At CNY -143.57 MM has Grown at -42.81%
ROCE(HY) Lowest at -27.31%

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 0.69%, its profits have fallen by -1.6%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 0.69% in the last 1 year, much lower than market (China Shanghai Composite) returns of 16.83%

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 Other Industrial Products)

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

Is NanJing Sanchao Advanced Materials Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

NanJing Sanchao Advanced Materials Co., Ltd.

-21.23%

0.15

47.50%

China Shanghai Composite

8.25%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.37%

EBIT Growth (5y)

-235.66%

EBIT to Interest (avg)

-14.19

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

0.41

Tax Ratio

34.71%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.01%

ROE (avg)

2.03%

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

6.31

EV to EBIT

-26.83

EV to EBITDA

-35.08

EV to Capital Employed

6.40

EV to Sales

13.45

PEG Ratio

Dividend Yield

ROCE (Latest)

-23.84%

ROE (Latest)

-31.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -303.59% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY -5.23 MM

NET PROFIT(Q)

Highest at CNY -3.56 MM

EPS(Q)

Highest at CNY -0.03

-6What is not working for the Company

NET PROFIT(HY)

At CNY -143.57 MM has Grown at -42.81%

ROCE(HY)

Lowest at -27.31%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.21 times

Here's what is working for NanJing Sanchao Advanced Materials Co., Ltd.

Pre-Tax Profit

Highest at CNY -5.23 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY -5.23 MM has Grown at 82.37%

over average net sales of the previous four periods of CNY -29.63 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY -3.56 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY -3.56 MM has Grown at 91.05%

over average net sales of the previous four periods of CNY -39.82 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY -0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -303.59% (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 Sanchao Advanced Materials Co., Ltd.

Inventory Turnover Ratio

Lowest at 1.21 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio