Poly Union Chemical Holding Group Co., Ltd. (002037) 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

Poly Union Chemical Holding Group Co., Ltd.

Why is Poly Union Chemical Holding Group Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.95%

Poor long term growth as Net Sales has grown by an annual rate of 5.10% and Operating profit at -11.62% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
INTEREST(HY) At CNY 182.99 MM has Grown at 14.65%
PRE-TAX PROFIT(Q) At CNY -28.76 MM has Fallen at -129.34%
NET PROFIT(Q) At CNY -39.26 MM has Fallen at -550.22%

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 -0.99%, its profits have risen by 96.7%

Below par performance in long term as well as near term

Along with generating -0.99% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Construction)

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

Is Poly Union Chemical Holding Group Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Poly Union Chemical Holding Group Co., Ltd.

-0.99%

0.57

42.74%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.10%

EBIT Growth (5y)

-11.62%

EBIT to Interest (avg)

0.16

Debt to EBITDA (avg)

8.69

Net Debt to Equity (avg)

2.74

Sales to Capital Employed (avg)

0.73

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.95%

ROE (avg)

2.05%

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

2.68

EV to EBIT

39.12

EV to EBITDA

20.84

EV to Capital Employed

1.45

EV to Sales

1.46

PEG Ratio

Dividend Yield

ROCE (Latest)

3.72%

ROE (Latest)

-1.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 509.42 MM

RAW MATERIAL COST(Y)

Fallen by -5.91% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 15.19 times

DEBTORS TURNOVER RATIO(HY)

Highest at 0.93 times

-24What is not working for the Company

INTEREST(HY)

At CNY 182.99 MM has Grown at 14.65%

PRE-TAX PROFIT(Q)

At CNY -28.76 MM has Fallen at -129.34%

NET PROFIT(Q)

At CNY -39.26 MM has Fallen at -550.22%

INTEREST COVERAGE RATIO(Q)

Lowest at 44.77

CASH AND EQV(HY)

Lowest at CNY 2,634.54 MM

NET SALES(Q)

Fallen at -13.91%

OPERATING PROFIT MARGIN(Q)

Lowest at 2.87 %

Here's what is working for Poly Union Chemical Holding Group Co., Ltd.

Operating Cash Flow

Highest at CNY 509.42 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 15.19 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 0.93 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 -5.91% (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 Poly Union Chemical Holding Group Co., Ltd.

Pre-Tax Profit

At CNY -28.76 MM has Fallen at -129.34%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -39.26 MM has Fallen at -550.22%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 182.99 MM has Grown at 14.65%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 44.77

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Fallen at -13.91%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit Margin

Lowest at 2.87 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 2,634.54 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents