North Chemical Industries Co., Ltd. (002246) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

North Chemical Industries Co., Ltd.

Why is North Chemical Industries Co., Ltd. ?

With a growth in Net Profit of 145.09%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 5 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 321.22 MM
NET SALES(HY) At CNY 1,435.36 MM has Grown at 31.67%
ROCE(HY) Highest at 10.23%

With ROE of 9.38%, it has a fair valuation with a 3.68 Price to Book Value

Over the past year, while the stock has generated a return of 31.56%, its profits have risen by 8479.2%

Market Beating Performance

The stock has generated a return of 31.56% in the last 1 year, much higher than market (China Shanghai Composite) returns of 16.83%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to North Chemical Industries Co., Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is North Chemical Industries Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

North Chemical Industries Co., Ltd.

45.6%

1.86

56.25%

China Shanghai Composite

3.23%

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)

2.31%

EBIT Growth (5y)

28.85%

EBIT to Interest (avg)

24.24

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

0.68

Tax Ratio

17.46%

Dividend Payout Ratio

12.52%

Pledged Shares

Institutional Holding

ROCE (avg)

4.88%

ROE (avg)

2.27%

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

3.24

EV to EBIT

28.19

EV to EBITDA

22.44

EV to Capital Employed

4.50

EV to Sales

3.19

PEG Ratio

Dividend Yield

0.43%

ROCE (Latest)

15.97%

ROE (Latest)

9.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Bullish

OBV

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

27What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 506.43 MM

NET SALES(9M)

At CNY 2,251.96 MM has Grown at 26.69%

ROCE(HY)

Highest at 12.35%

INTEREST COVERAGE RATIO(Q)

Highest at 24,489.54

RAW MATERIAL COST(Y)

Fallen by -34.99% (YoY

CASH AND EQV(HY)

Highest at CNY 3,565.57 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.29 times

OPERATING PROFIT(Q)

Highest at CNY 190.73 MM

OPERATING PROFIT MARGIN(Q)

Highest at 23.36 %

PRE-TAX PROFIT(Q)

Highest at CNY 178.32 MM

NET PROFIT(Q)

Highest at CNY 152.97 MM

EPS(Q)

Highest at CNY 0.28

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for North Chemical Industries Co., Ltd.

Operating Cash Flow

Highest at CNY 506.43 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)

Interest Coverage Ratio

Highest at 24,489.54

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At CNY 178.32 MM has Grown at 107.22%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 2,251.96 MM has Grown at 26.69%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 190.73 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 23.36 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 178.32 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 152.97 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 152.97 MM has Grown at 100.06%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.28

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 3,565.57 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 2.29 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -34.99% (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

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