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 45.43%, its profits have risen by 8479.2%

Consistent Returns over the last 3 years

Along with generating 45.43% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

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.

38.39%

1.94

57.93%

China Shanghai Composite

21.43%

1.73

13.79%

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)

14.05

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

0.67

Tax Ratio

69.31%

Dividend Payout Ratio

12.52%

Pledged Shares

Institutional Holding

ROCE (avg)

1.99%

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

3.68

EV to EBIT

32.46

EV to EBITDA

25.84

EV to Capital Employed

5.18

EV to Sales

3.68

PEG Ratio

Dividend Yield

0.21%

ROCE (Latest)

15.97%

ROE (Latest)

9.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

28What is working for the Company

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%

INVENTORY TURNOVER RATIO(HY)

Highest at 5.16 times

PRE-TAX PROFIT(Q)

At CNY 83.02 MM has Grown at 161.01%

NET PROFIT(Q)

At CNY 72.32 MM has Grown at 152.61%

RAW MATERIAL COST(Y)

Fallen by -31.8% (YoY

CASH AND EQV(HY)

Highest at CNY 3,572.82 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.16 times

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 321.22 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)

Pre-Tax Profit

At CNY 83.02 MM has Grown at 161.01%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 72.32 MM has Grown at 152.61%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 1,435.36 MM has Grown at 31.67%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 5.16 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at CNY 3,572.82 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 2.16 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 -31.8% (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