ScoreWhy is Wanhua Chemical Group Co., Ltd. ?
1
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 21.17% and Operating profit at 11.48% 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
2
The company has declared Negative results for the last 6 consecutive quarters
- NET PROFIT(9M) At CNY 8,404.98 MM has Grown at -31.34%
- NET SALES(9M) At CNY 124,448.34 MM has Grown at -10.57%
- ROCE(HY) Lowest at 11.48%
3
With ROE of 12.89%, it has a fair valuation with a 1.99 Price to Book Value
- Over the past year, while the stock has generated a return of -9.83%, its profits have fallen by -28.5%
- At the current price, the company has a high dividend yield of 1.2
4
Majority shareholders : Non Institution
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -9.83% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
Real-Time Research ReportHow 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.
-7.79%
-0.79
29.12%
China Shanghai Composite
15.19%
1.01
14.58%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
21.17%
EBIT Growth (5y)
11.48%
EBIT to Interest (avg)
9.36
Debt to EBITDA (avg)
2.71
Net Debt to Equity (avg)
1.30
Sales to Capital Employed (avg)
0.77
Tax Ratio
12.64%
Dividend Payout Ratio
30.11%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
14.27%
ROE (avg)
22.83%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
1.99
EV to EBIT
22.00
EV to EBITDA
11.14
EV to Capital Employed
1.43
EV to Sales
1.87
PEG Ratio
NA
Dividend Yield
1.15%
ROCE (Latest)
6.52%
ROE (Latest)
12.89%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Sideways
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-11What is not working for the Company
NET PROFIT(9M)
At CNY 8,404.98 MM has Grown at -31.34%
NET SALES(9M)
At CNY 124,448.34 MM has Grown at -10.57%
ROCE(HY)
Lowest at 11.48%
RAW MATERIAL COST(Y)
Grown by 29.75% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 136.42 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 6.05%
DEBTORS TURNOVER RATIO(HY)
Lowest at 8.22%
Here's what is not working for Wanhua Chemical Group Co., Ltd.
Net Profit
At CNY 8,404.98 MM has Grown at -31.34%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Net Sales
At CNY 124,448.34 MM has Grown at -10.57%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Debt-Equity Ratio
Highest at 136.42 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 6.05%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 8.22%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 29.75% (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
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