Nantong Jiangshan Agrochemical & Chemicals Co., Ltd. (600389) 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

Nantong Jiangshan Agrochemical & Chemicals Co., Ltd.

Why is Nantong Jiangshan Agrochemical & Chemicals Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 27.75%

The company has been able to generate a Return on Capital Employed (avg) of 27.75% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 2.07% and Operating profit at 1.84% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 23.10% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.07% and Operating profit at 1.84% over the last 5 years

With a fall in Net Sales of -6.64%, the company declared Very Negative results in Jun 26

The company has declared negative results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CNY 96.65 MM
DEBT-EQUITY RATIO (HY) Highest at 37.07 %
DEBTORS TURNOVER RATIO(HY) Lowest at 5.76 times

With ROE of 13.38%, it has a very expensive valuation with a 2.04 Price to Book Value

Over the past year, while the stock has generated a return of -25.47%, its profits have risen by 89% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 2.8

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 Chemicals & Petrochemicals)

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

Is Nantong Jiangshan Agrochemical & Chemicals Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nantong Jiangshan Agrochemical & Chemicals Co., Ltd.

-25.28%

0.54

46.91%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.07%

EBIT Growth (5y)

1.84%

EBIT to Interest (avg)

33.57

Debt to EBITDA (avg)

1.19

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

0.90

Tax Ratio

19.64%

Dividend Payout Ratio

44.47%

Pledged Shares

Institutional Holding

ROCE (avg)

26.04%

ROE (avg)

23.10%

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

2.04

EV to EBIT

22.56

EV to EBITDA

16.24

EV to Capital Employed

1.69

EV to Sales

1.76

PEG Ratio

0.17

Dividend Yield

2.85%

ROCE (Latest)

7.51%

ROE (Latest)

13.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

Mildly 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

1What is working for the Company

NET SALES(Q)

At CNY 1,815.46 MM has Grown at 20.87%

-21What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 96.65 MM

DEBT-EQUITY RATIO (HY)

Highest at 37.07 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.76 times

INTEREST COVERAGE RATIO(Q)

Lowest at 1,739.7

INTEREST(Q)

Highest at CNY 13.3 MM

Here's what is working for Nantong Jiangshan Agrochemical & Chemicals Co., Ltd.

Net Sales

At CNY 1,815.46 MM has Grown at 20.87%

over average net sales of the previous four periods of CNY 1,502 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Nantong Jiangshan Agrochemical & Chemicals Co., Ltd.

Operating Cash Flow

Lowest at CNY 96.65 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

At CNY 13.3 MM has Grown at 20.72%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,739.7

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 37.07 % 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

Debtors Turnover Ratio

Lowest at 5.76 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

Highest at CNY 13.3 MM

in the last five periods and Increased by 20.72% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)