New East New Materials Co., Ltd. (603110) 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

New East New Materials Co., Ltd.

Why is New East New Materials Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 0.25% and Operating profit at -38.09% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(HY) At CNY 0.24 MM has Grown at -97.6%
OPERATING CASH FLOW(Y) Lowest at CNY 10.52 MM
ROCE(HY) Lowest at 0.64%

With ROE of 1.29%, it has a very expensive valuation with a 4.92 Price to Book Value

Over the past year, while the stock has generated a return of -8.02%, its profits have fallen by -82%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -8.02% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 New East New Materials Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

New East New Materials Co., Ltd.

65.26%

1.06

42.98%

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)

-31.75%

EBIT to Interest (avg)

16.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

0.54

Tax Ratio

32.78%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.67%

ROE (avg)

5.46%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

4163

Industry P/E

Price to Book Value

5.97

EV to EBIT

497.74

EV to EBITDA

177.84

EV to Capital Employed

7.58

EV to Sales

9.77

PEG Ratio

Dividend Yield

0.24%

ROCE (Latest)

1.52%

ROE (Latest)

0.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 32.56 MM

RAW MATERIAL COST(Y)

Fallen by -13.75% (YoY

NET SALES(Q)

Highest at CNY 109.95 MM

OPERATING PROFIT(Q)

Highest at CNY 12.02 MM

PRE-TAX PROFIT(Q)

Highest at CNY 12.94 MM

NET PROFIT(Q)

Highest at CNY 10.43 MM

EPS(Q)

Highest at CNY 0.05

-19What is not working for the Company

NET PROFIT(HY)

At CNY 0.67 MM has Grown at -84.11%

INTEREST(HY)

At CNY 0.04 MM has Grown at 207.48%

ROCE(HY)

Lowest at 0.16%

CASH AND EQV(HY)

Lowest at CNY 399.82 MM

Here's what is working for New East New Materials Co., Ltd.

Pre-Tax Profit

At CNY 12.94 MM has Grown at 3,890.99%

over average net sales of the previous four periods of CNY 0.32 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 10.43 MM has Grown at 735.28%

over average net sales of the previous four periods of CNY -1.64 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 32.56 MM and Grown

In each year 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 109.95 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 12.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 12.94 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 10.43 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -13.75% (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 New East New Materials Co., Ltd.

Interest

At CNY 0.04 MM has Grown at 207.48%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 399.82 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents