Why is Qinghai Salt Lake Industry Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of -3.88% and Operating profit at 15.97% over the last 5 years
2
The company has declared Negative results for the last 9 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at CNY 8,018.01 MM
- ROCE(HY) Lowest at 13.82%
- NET SALES(Q) At CNY 2,923.04 MM has Fallen at -15.67%
3
With ROE of 13.47%, it has a fair valuation with a 2.68 Price to Book Value
- Over the past year, while the stock has generated a return of 31.01%, its profits have fallen by -6.1%
4
Market Beating Performance
- The stock has generated a return of 31.01% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%
How much should you hold?
- Overall Portfolio exposure to Qinghai Salt Lake Industry Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Chemicals & Petrochemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Qinghai Salt Lake Industry Co., Ltd. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Qinghai Salt Lake Industry Co., Ltd.
-100.0%
1.71
28.57%
China Shanghai Composite
15.19%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
-3.88%
EBIT Growth (5y)
15.97%
EBIT to Interest (avg)
41.61
Debt to EBITDA (avg)
0.29
Net Debt to Equity (avg)
-0.36
Sales to Capital Employed (avg)
0.50
Tax Ratio
15.07%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
63.83%
ROE (avg)
42.79%
Valuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
2.68
EV to EBIT
13.50
EV to EBITDA
11.75
EV to Capital Employed
7.46
EV to Sales
5.51
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
55.27%
ROE (Latest)
13.47%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
4What is working for the Company
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by -14.7% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 6.36%
-11What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 8,018.01 MM
ROCE(HY)
Lowest at 13.82%
NET SALES(Q)
At CNY 2,923.04 MM has Fallen at -15.67%
Here's what is working for Qinghai Salt Lake Industry Co., Ltd.
Inventory Turnover Ratio
Highest at 6.36%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -14.7% (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 Qinghai Salt Lake Industry Co., Ltd.
Operating Cash Flow
Lowest at CNY 8,018.01 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Net Sales
At CNY 2,923.04 MM has Fallen at -15.67%
over average net sales of the previous four periods of CNY 3,466.19 MMMOJO Watch
Near term sales trend is very negative
Net Sales (CNY MM)






