Wanhua Chemical Group Co., Ltd. (600309) 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

Wanhua Chemical Group Co., Ltd.

Why is Wanhua Chemical Group Co., Ltd. ?

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 21.18% and Operating profit at 11.64% 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 22.83% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 28,288.25 MM
ROCE(HY) Lowest at 11.19%
INTEREST COVERAGE RATIO(Q) Lowest at 636.86

With ROE of 12.89%, it has a fair valuation with a 2.01 Price to Book Value

Over the past year, while the stock has generated a return of 32.07%, its profits have fallen by -28.5%
At the current price, the company has a high dividend yield of 1.1

Majority shareholders : Non Institution

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wanhua Chemical Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

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

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

Is Wanhua Chemical Group Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Wanhua Chemical Group Co., Ltd.

40.31%

0.11

33.36%

China Shanghai Composite

20.18%

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)

19.14%

EBIT Growth (5y)

-0.01%

EBIT to Interest (avg)

9.36

Debt to EBITDA (avg)

2.71

Net Debt to Equity (avg)

1.30

Sales to Capital Employed (avg)

0.75

Tax Ratio

12.64%

Dividend Payout Ratio

31.29%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

14.27%

ROE (avg)

22.83%

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

1.97

EV to EBIT

18.60

EV to EBITDA

10.95

EV to Capital Employed

1.47

EV to Sales

1.58

PEG Ratio

1.72

Dividend Yield

1.79%

ROCE (Latest)

7.88%

ROE (Latest)

13.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 39,893.48 MM

NET SALES(HY)

At CNY 113,060.94 MM has Grown at 45.82%

RAW MATERIAL COST(Y)

Fallen by -4.02% (YoY

CASH AND EQV(HY)

Highest at CNY 76,993.55 MM

PRE-TAX PROFIT(Q)

Highest at CNY 4,979.26 MM

NET PROFIT(Q)

Highest at CNY 3,669.07 MM

EPS(Q)

Highest at CNY 1.19

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 572.7

INTEREST(Q)

Highest at CNY 970.44 MM

OPERATING PROFIT(Q)

Lowest at CNY 5,557.76 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.28 %

Here's what is working for Wanhua Chemical Group Co., Ltd.

Net Sales

At CNY 113,060.94 MM has Grown at 45.82%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 39,893.48 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)

Pre-Tax Profit

Highest at CNY 4,979.26 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 3,669.07 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 1.19

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 76,993.55 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -4.02% (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 Wanhua Chemical Group Co., Ltd.

Interest

At CNY 970.44 MM has Grown at 71.71%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 572.7

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 970.44 MM

in the last five periods and Increased by 71.71% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 5,557.76 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 10.28 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales