Why is Yangmei Chemical Co., Ltd. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.98%
- Poor long term growth as Net Sales has grown by an annual rate of -8.62% and Operating profit at -196.22% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
Negative results in Mar 25
- OPERATING CASH FLOW(Y) Lowest at CNY 88.97 MM
- DEBT-EQUITY RATIO (HY) Highest at 173.79 %
- RAW MATERIAL COST(Y) Grown by 94.73% (YoY)
3
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 18.40%, its profits have risen by 70.7%
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Yangmei Chemical Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Yangmei Chemical Co., Ltd.
18.4%
1.01
47.31%
China Shanghai Composite
14.77%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
-8.62%
EBIT Growth (5y)
-196.22%
EBIT to Interest (avg)
-0.49
Debt to EBITDA (avg)
4.28
Net Debt to Equity (avg)
1.51
Sales to Capital Employed (avg)
0.75
Tax Ratio
3.65%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.98%
ROE (avg)
3.32%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
1.75
EV to EBIT
-24.79
EV to EBITDA
44.30
EV to Capital Employed
1.28
EV to Sales
1.18
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-5.18%
ROE (Latest)
-17.98%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
7What is working for the Company
NET PROFIT(HY)
Higher at CNY -433.5 MM
-14What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 88.97 MM
DEBT-EQUITY RATIO
(HY)
Highest at 173.79 %
RAW MATERIAL COST(Y)
Grown by 94.73% (YoY
CASH AND EQV(HY)
Lowest at CNY 9,741.07 MM
NET SALES(Q)
Lowest at CNY 2,325.88 MM
OPERATING PROFIT(Q)
Lowest at CNY -120.39 MM
OPERATING PROFIT MARGIN(Q)
Lowest at -5.18 %
Here's what is working for Yangmei Chemical Co., Ltd.
Net Profit
Higher at CNY -433.5 MM
than preceding 12 month period ended Mar 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (CNY MM)
Net Profit
At CNY -433.5 MM has Grown at 63.04%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Here's what is not working for Yangmei Chemical Co., Ltd.
Operating Cash Flow
Lowest at CNY 88.97 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Net Sales
At CNY 2,325.88 MM has Fallen at -14.02%
over average net sales of the previous four periods of CNY 2,705.29 MMMOJO Watch
Near term sales trend is very negative
Net Sales (CNY MM)
Debt-Equity Ratio
Highest at 173.79 % and Grown
In each half year 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
Net Sales
Lowest at CNY 2,325.88 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY -120.39 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at -5.18 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Cash and Eqv
Lowest at CNY 9,741.07 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Raw Material Cost
Grown by 94.73% (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






