Why is Yuancheng Environment 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 -27.18% and Operating profit at -214.88% 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 3.87% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of -27.18% and Operating profit at -214.88% over the last 5 years
3
Negative results in Mar 25
- ROCE(HY) Lowest at -33.27%
- DEBT-EQUITY RATIO (HY) Highest at 66.17 %
- CASH AND EQV(HY) Lowest at CNY 25.94 MM
4
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 -78.36%, its profits have fallen by -57.9%
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -78.36% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
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 Miscellaneous)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Yuancheng Environment Co., Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Yuancheng Environment Co., Ltd.
-78.36%
-1.17
58.64%
China Shanghai Composite
14.77%
1.17
14.60%
Quality key factors
Factor
Value
Sales Growth (5y)
-27.18%
EBIT Growth (5y)
-214.88%
EBIT to Interest (avg)
0.69
Debt to EBITDA (avg)
20.52
Net Debt to Equity (avg)
0.66
Sales to Capital Employed (avg)
0.12
Tax Ratio
0.62%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.33%
ROE (avg)
3.87%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.29
EV to EBIT
-2.93
EV to EBITDA
-2.99
EV to Capital Employed
0.62
EV to Sales
4.92
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-21.13%
ROE (Latest)
-53.85%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Bearish
Bearish
OBV
No Trend
Mildly Bearish
Technical Movement
14What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 27.98 MM
RAW MATERIAL COST(Y)
Fallen by -85.83% (YoY
NET SALES(Q)
At CNY 35.98 MM has Grown at 25.34%
-18What is not working for the Company
ROCE(HY)
Lowest at -33.27%
DEBT-EQUITY RATIO
(HY)
Highest at 66.17 %
CASH AND EQV(HY)
Lowest at CNY 25.94 MM
INTEREST(Q)
Highest at CNY 34.83 MM
Here's what is working for Yuancheng Environment Co., Ltd.
Operating Cash Flow
Highest at CNY 27.98 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Sales
At CNY 35.98 MM has Grown at 25.34%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Raw Material Cost
Fallen by -85.83% (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 Yuancheng Environment Co., Ltd.
Interest
At CNY 34.83 MM has Grown at 199.68%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debt-Equity Ratio
Highest at 66.17 % 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
Interest
Highest at CNY 34.83 MM
in the last five periods and Increased by 199.68% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Cash and Eqv
Lowest at CNY 25.94 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents






