Shandong Fengyuan Chemical Co., Ltd. (002805) 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

Shandong Fengyuan Chemical Co., Ltd.

Why is Shandong Fengyuan Chemical Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.65%

The company has been able to generate a Return on Capital Employed (avg) of 1.65% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 51.50% and Operating profit at -293.91% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 1.37% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 51.50% and Operating profit at -293.91% over the last 5 years

Positive results in Mar 26

RAW MATERIAL COST(Y) Fallen by -134.86% (YoY)
DEBTORS TURNOVER RATIO(HY) Highest at 4.26 times
NET SALES(Q) Highest at CNY 1,382.82 MM

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 119.04%, its profits have risen by 29.5%

Market Beating performance in long term as well as near term

Along with generating 119.04% returns in the last 1 year, the stock has outperformed 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 Shandong Fengyuan Chemical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

Is Shandong Fengyuan Chemical Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shandong Fengyuan Chemical Co., Ltd.

108.51%

3.10

56.22%

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)

51.50%

EBIT Growth (5y)

-293.91%

EBIT to Interest (avg)

-0.95

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

1.25

Sales to Capital Employed (avg)

0.53

Tax Ratio

0.60%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.65%

ROE (avg)

1.37%

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

5.88

EV to EBIT

-25.60

EV to EBITDA

-107.98

EV to Capital Employed

2.64

EV to Sales

2.20

PEG Ratio

Dividend Yield

ROCE (Latest)

-10.30%

ROE (Latest)

-37.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly 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

34What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -134.86% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.26 times

NET SALES(Q)

Highest at CNY 1,382.82 MM

OPERATING PROFIT(Q)

Highest at CNY 77.31 MM

OPERATING PROFIT MARGIN(Q)

Highest at 5.59 %

PRE-TAX PROFIT(Q)

Highest at CNY 86.17 MM

NET PROFIT(Q)

Highest at CNY 76.91 MM

EPS(Q)

Highest at CNY 0.27

-14What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 202.07 %

INTEREST(Q)

Highest at CNY 83.56 MM

Here's what is working for Shandong Fengyuan Chemical Co., Ltd.

Net Sales

At CNY 1,382.82 MM has Grown at 138.02%

over average net sales of the previous four periods of CNY 580.96 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 86.17 MM has Grown at 163.45%

over average net sales of the previous four periods of CNY -135.81 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 76.91 MM has Grown at 163.4%

over average net sales of the previous four periods of CNY -121.3 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 1,382.82 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 77.31 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 5.59 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 86.17 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 76.91 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.27

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 4.26 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 -134.86% (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 Shandong Fengyuan Chemical Co., Ltd.

Interest

At CNY 83.56 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 202.07 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at CNY 83.56 MM

in the last five periods and Increased by inf% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)