XTC New Energy Materials (Xiamen) Co., Ltd. () 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

XTC New Energy Materials (Xiamen) Co., Ltd.

Why is XTC New Energy Materials (Xiamen) Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 6.45% and Operating profit at -12.27% over the last 5 years

The company has declared Negative results for the last 9 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 901 MM
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
RAW MATERIAL COST(Y) Grown by 111.66% (YoY)

With ROE of 6.19%, it has a expensive valuation with a 4.53 Price to Book Value

Over the past year, while the stock has generated a return of 61.30%, its profits have risen by 8.6%
At the current price, the company has a high dividend yield of 0.7

Market Beating performance in long term as well as near term

Along with generating 61.30% 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 XTC New Energy Materials (Xiamen) 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 XTC New Energy Materials (Xiamen) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

XTC New Energy Materials (Xiamen) Co., Ltd.

12.26%

2.11

61.30%

China Shanghai Composite

16.95%

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)

5.81%

EBIT Growth (5y)

50.00%

EBIT to Interest (avg)

12.79

Debt to EBITDA (avg)

1.25

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

1.30

Tax Ratio

4.84%

Dividend Payout Ratio

33.35%

Pledged Shares

Institutional Holding

ROCE (avg)

9.80%

ROE (avg)

10.19%

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

2.96

EV to EBIT

5.33

EV to EBITDA

5.04

EV to Capital Employed

2.30

EV to Sales

1.40

PEG Ratio

0.92

Dividend Yield

0.96%

ROCE (Latest)

43.07%

ROE (Latest)

8.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

19What is working for the Company

NET PROFIT(HY)

At CNY 421.58 MM has Grown at 71.65%

ROCE(HY)

Highest at 9.08%

NET SALES(Q)

At CNY 6,585.16 MM has Grown at 32.51%

DEBTORS TURNOVER RATIO(HY)

Highest at 6 times

PRE-TAX PROFIT(Q)

Highest at CNY 255.17 MM

EPS(Q)

Highest at CNY 0.44

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 1,315.98 MM

RAW MATERIAL COST(Y)

Grown by 17.76% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 51.52 %

OPERATING PROFIT MARGIN(Q)

Lowest at 4.44 %

Here's what is working for XTC New Energy Materials (Xiamen) Co., Ltd.

Net Sales

At CNY 6,585.16 MM has Grown at 32.51%

over average net sales of the previous four periods of CNY 4,969.54 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Profit

At CNY 421.58 MM has Grown at 71.65%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 255.17 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 255.17 MM has Grown at 72.38%

over average net sales of the previous four periods of CNY 148.03 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

EPS

Highest at CNY 0.44

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 6 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for XTC New Energy Materials (Xiamen) Co., Ltd.

Operating Cash Flow

Lowest at CNY 1,315.98 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)

Operating Profit Margin

Lowest at 4.44 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 51.52 %

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

Raw Material Cost

Grown by 17.76% (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