Qifeng New Material Co., Ltd. (002521) 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

Qifeng New Material Co., Ltd.

Why is Qifeng New Material Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.04%

The company has been able to generate a Return on Capital Employed (avg) of 4.04% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 0.84% and Operating profit at -5.76% over the last 5 years

Flat results in Mar 26

INTEREST(Q) At CNY 5.03 MM has Grown at 349.99%
INTEREST COVERAGE RATIO(Q) Lowest at 870.27
INVENTORY TURNOVER RATIO(HY) Lowest at 4.96 times

With ROE of 4.13%, it has a very attractive valuation with a 0.57 Price to Book Value

Over the past year, while the stock has generated a return of -20.77%, its profits have risen by 112% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 5.8

Below par performance in long term as well as near term

Along with generating -20.77% 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 hold?

Overall Portfolio exposure to Qifeng New Material Co., Ltd. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

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

Is Qifeng New Material Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Qifeng New Material Co., Ltd.

-29.33%

-1.35

29.08%

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)

0.84%

EBIT Growth (5y)

-5.76%

EBIT to Interest (avg)

6.48

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.01

Sales to Capital Employed (avg)

0.73

Tax Ratio

14.05%

Dividend Payout Ratio

97.68%

Pledged Shares

Institutional Holding

ROCE (avg)

3.25%

ROE (avg)

3.45%

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

0.90

EV to EBIT

20.44

EV to EBITDA

11.27

EV to Capital Employed

0.90

EV to Sales

1.04

PEG Ratio

0.20

Dividend Yield

3.71%

ROCE (Latest)

4.40%

ROE (Latest)

4.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

6What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 142.05%

NET PROFIT(9M)

Higher at CNY 118.11 MM

DEBT-EQUITY RATIO (HY)

Lowest at -11.47 %

NET SALES(Q)

Highest at CNY 861.93 MM

-12What is not working for the Company

INTEREST(HY)

At CNY 10.34 MM has Grown at 29.38%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,512.79

RAW MATERIAL COST(Y)

Grown by 9.04% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.81 times

OPERATING PROFIT(Q)

Lowest at CNY 80.32 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.32 %

PRE-TAX PROFIT(Q)

Lowest at CNY 40.6 MM

NET PROFIT(Q)

Lowest at CNY 37.12 MM

Here's what is working for Qifeng New Material Co., Ltd.

Net Sales

Highest at CNY 861.93 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at -11.47 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 142.05%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Qifeng New Material Co., Ltd.

Interest

At CNY 10.34 MM has Grown at 29.38%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,512.79

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 80.32 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 9.32 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 40.6 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 37.12 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 4.81 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 9.04% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

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