Yangzhou Chenhua New Material Co., Ltd. (300610) 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

Yangzhou Chenhua New Material Co., Ltd.

Why is Yangzhou Chenhua New Material Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -2.24% and Operating profit at -17.72% over the last 5 years

Positive results in Mar 26

NET SALES(Q) Highest at CNY 264.43 MM
RAW MATERIAL COST(Y) Fallen by -21.86% (YoY)
CASH AND EQV(HY) Highest at CNY 1,680.25 MM

With ROE of 5.58%, it has a fair valuation with a 1.39 Price to Book Value

Over the past year, while the stock has generated a return of -10.95%, its profits have fallen by -18.6%
At the current price, the company has a high dividend yield of 1.9

Below par performance in long term as well as near term

Along with generating -10.95% returns in the last 1 year, the stock has also underperformed 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 Yangzhou Chenhua New Material 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 Yangzhou Chenhua New Material Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Yangzhou Chenhua New Material Co., Ltd.

-11.43%

0.36

34.81%

China Shanghai Composite

16.78%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.24%

EBIT Growth (5y)

-17.72%

EBIT to Interest (avg)

73.64

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.57

Sales to Capital Employed (avg)

0.67

Tax Ratio

6.81%

Dividend Payout Ratio

48.05%

Pledged Shares

Institutional Holding

ROCE (avg)

11.08%

ROE (avg)

9.97%

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

1.39

EV to EBIT

17.02

EV to EBITDA

11.26

EV to Capital Employed

1.92

EV to Sales

1.04

PEG Ratio

Dividend Yield

1.93%

ROCE (Latest)

11.27%

ROE (Latest)

5.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

10What is working for the Company

NET SALES(Q)

Highest at CNY 264.43 MM

RAW MATERIAL COST(Y)

Fallen by -21.86% (YoY

CASH AND EQV(HY)

Highest at CNY 1,680.25 MM

DEBT-EQUITY RATIO (HY)

Lowest at -57.7 %

INVENTORY TURNOVER RATIO(HY)

Highest at 7.38 times

PRE-TAX PROFIT(Q)

Highest at CNY 37.11 MM

NET PROFIT(Q)

At CNY 32.41 MM has Grown at 94.01%

-5What is not working for the Company

NET PROFIT(9M)

At CNY 43.62 MM has Grown at -37.97%

ROCE(HY)

Lowest at 5.48%

Here's what is working for Yangzhou Chenhua New Material Co., Ltd.

Net Sales

Highest at CNY 264.43 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

At CNY 264.43 MM has Grown at 20.89%

over average net sales of the previous four periods of CNY 218.73 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 37.11 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 37.11 MM has Grown at 79.91%

over average net sales of the previous four periods of CNY 20.62 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 32.41 MM has Grown at 94.01%

over average net sales of the previous four periods of CNY 16.71 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 1,680.25 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -57.7 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 7.38 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -21.86% (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