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.

14.56%

0.11

33.36%

China Shanghai Composite

15.17%

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)

21.18%

EBIT Growth (5y)

11.64%

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

30.11%

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

2.01

EV to EBIT

22.10

EV to EBITDA

11.20

EV to Capital Employed

1.44

EV to Sales

1.88

PEG Ratio

Dividend Yield

1.14%

ROCE (Latest)

6.52%

ROE (Latest)

12.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

RAW MATERIAL COST(Y)

Fallen by -2.44% (YoY

NET SALES(Q)

Highest at CNY 53,324.36 MM

-10What is not working for the Company

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

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.98 times

OPERATING PROFIT(Q)

Lowest at CNY 4,420.21 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.29 %

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

Net Sales

Highest at CNY 53,324.36 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 53,324.36 MM has Grown at 21.26%

over average net sales of the previous four periods of CNY 43,975.8 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -2.44% (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.

Operating Cash Flow

Lowest at CNY 28,288.25 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)

Interest Coverage Ratio

Lowest at 636.86

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 4,420.21 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.29 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 8.98 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio