Shenyang Chemical Industry Co., Ltd. (000698) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shenyang Chemical Industry Co., Ltd.

Why is Shenyang Chemical Industry Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.05%

The company has been able to generate a Return on Capital Employed (avg) of 3.05% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -10.98% and Operating profit at 15.97% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 3.74% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -10.98% and Operating profit at 15.97% over the last 5 years

The company has declared Positive results for the last 3 consecutive quarters

ROCE(HY) Highest at -8.06%
PRE-TAX PROFIT(Q) At CNY 36.18 MM has Grown at 180.26%
RAW MATERIAL COST(Y) Fallen by -88.5% (YoY)

With ROE of 12.41%, it has a fair valuation with a 2.13 Price to Book Value

Over the past year, while the stock has generated a return of 8.10%, its profits have risen by 136.1% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenyang Chemical Industry 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 Shenyang Chemical Industry Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shenyang Chemical Industry Co., Ltd.

-3.12%

0.43

40.77%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-10.98%

EBIT Growth (5y)

15.97%

EBIT to Interest (avg)

-3.66

Debt to EBITDA (avg)

5.14

Net Debt to Equity (avg)

0.80

Sales to Capital Employed (avg)

1.27

Tax Ratio

9.65%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.05%

ROE (avg)

3.74%

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

2.13

EV to EBIT

49.23

EV to EBITDA

14.61

EV to Capital Employed

1.57

EV to Sales

0.87

PEG Ratio

0.13

Dividend Yield

ROCE (Latest)

3.20%

ROE (Latest)

12.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

No Trend

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

17What is working for the Company

ROCE(HY)

Highest at -8.06%

PRE-TAX PROFIT(Q)

At CNY 36.18 MM has Grown at 180.26%

RAW MATERIAL COST(Y)

Fallen by -88.5% (YoY

NET PROFIT(9M)

Higher at CNY 148.92 MM

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 12.24 MM

CASH AND EQV(HY)

Lowest at CNY 1,763.28 MM

NET SALES(Q)

At CNY 1,137.52 MM has Fallen at -8.77%

Here's what is working for Shenyang Chemical Industry Co., Ltd.

Pre-Tax Profit

At CNY 36.18 MM has Grown at 180.26%

over average net sales of the previous four periods of CNY -45.08 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 32.35 MM has Grown at 177.01%

over average net sales of the previous four periods of CNY -42.01 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -88.5% (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 Shenyang Chemical Industry Co., Ltd.

Operating Cash Flow

Lowest at CNY 12.24 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 1,137.52 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 1,137.52 MM has Fallen at -8.77%

over average net sales of the previous four periods of CNY 1,246.82 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 1,763.28 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents