Shanghai Chlor-Alkali Chemical Co., Ltd. (600618) 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

Shanghai Chlor-Alkali Chemical Co., Ltd.

Why is Shanghai Chlor-Alkali Chemical Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 10.44% and Operating profit at 5.67% over the last 5 years

Negative results in Sep 25

DEBT-EQUITY RATIO (HY) Highest at 0.51 %
INTEREST COVERAGE RATIO(Q) Lowest at 1,804.45
RAW MATERIAL COST(Y) Grown by 29% (YoY)

With ROE of 9.76%, it has a very attractive valuation with a 1.06 Price to Book Value

Over the past year, while the stock has generated a return of 40.33%, its profits have fallen by -1%
At the current price, the company has a high dividend yield of 1.7

Market Beating performance in long term as well as near term

Along with generating 40.33% 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 Shanghai Chlor-Alkali 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 Shanghai Chlor-Alkali Chemical Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Chlor-Alkali Chemical Co., Ltd.

20.11%

1.23

42.46%

China Shanghai Composite

13.33%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.44%

EBIT Growth (5y)

5.67%

EBIT to Interest (avg)

69.02

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.15

Sales to Capital Employed (avg)

0.76

Tax Ratio

8.74%

Dividend Payout Ratio

30.84%

Pledged Shares

Institutional Holding

ROCE (avg)

17.66%

ROE (avg)

14.80%

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

1.06

EV to EBIT

14.96

EV to EBITDA

8.54

EV to Capital Employed

1.07

EV to Sales

1.18

PEG Ratio

Dividend Yield

1.66%

ROCE (Latest)

7.13%

ROE (Latest)

9.76%

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

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,209.51 MM

-10What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 0.51 %

INTEREST COVERAGE RATIO(Q)

Lowest at 1,804.45

RAW MATERIAL COST(Y)

Grown by 29% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.52 times

OPERATING PROFIT(Q)

Lowest at CNY 112.9 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.35 %

NET PROFIT(Q)

Lowest at CNY 169.73 MM

EPS(Q)

Lowest at CNY 0.15

Here's what is working for Shanghai Chlor-Alkali Chemical Co., Ltd.

Operating Cash Flow

Highest at CNY 1,209.51 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)

Here's what is not working for Shanghai Chlor-Alkali Chemical Co., Ltd.

Interest Coverage Ratio

Lowest at 1,804.45

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 0.51 % 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

Operating Profit

Lowest at CNY 112.9 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.35 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 169.73 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.15

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 10.52 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 29% (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