Yuanli Chemical Group Co., Ltd. (603217) 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

Yuanli Chemical Group Co., Ltd.

Why is Yuanli Chemical Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 13.88% and Operating profit at 12.05% over the last 5 years

The company has declared Negative results for the last 10 consecutive quarters

INTEREST(HY) At CNY 0.03 MM has Grown at 11.54%
DEBT-EQUITY RATIO (HY) Highest at -30.54 %
DEBTORS TURNOVER RATIO(HY) Lowest at 4.22 times

With ROE of 6.25%, it has a fair valuation with a 1.34 Price to Book Value

Over the past year, while the stock has generated a return of 43.34%, its profits have fallen by -9.4%
At the current price, the company has a high dividend yield of 1.6

Market Beating Performance

The stock has generated a return of 43.34% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Yuanli Chemical Group 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 Yuanli Chemical Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Yuanli Chemical Group Co., Ltd.

30.44%

1.62

40.63%

China Shanghai Composite

15.17%

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)

13.88%

EBIT Growth (5y)

12.05%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.34

Sales to Capital Employed (avg)

0.59

Tax Ratio

14.03%

Dividend Payout Ratio

34.65%

Pledged Shares

Institutional Holding

ROCE (avg)

14.59%

ROE (avg)

10.08%

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

1.34

EV to EBIT

19.53

EV to EBITDA

12.59

EV to Capital Employed

1.45

EV to Sales

1.65

PEG Ratio

Dividend Yield

1.64%

ROCE (Latest)

7.42%

ROE (Latest)

6.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 241.73 MM

RAW MATERIAL COST(Y)

Fallen by -16.15% (YoY

CASH AND EQV(HY)

Highest at CNY 3,917.56 MM

-14What is not working for the Company

INTEREST(HY)

At CNY 0.03 MM has Grown at 11.54%

DEBT-EQUITY RATIO (HY)

Highest at -30.54 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.22 times

OPERATING PROFIT(Q)

Lowest at CNY 43.85 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.15 %

PRE-TAX PROFIT(Q)

Lowest at CNY 51.59 MM

NET PROFIT(Q)

Lowest at CNY 44.09 MM

EPS(Q)

Lowest at CNY 0.22

Here's what is working for Yuanli Chemical Group Co., Ltd.

Operating Cash Flow

Highest at CNY 241.73 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 3,917.56 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -16.15% (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 Yuanli Chemical Group Co., Ltd.

Interest

At CNY 0.03 MM has Grown at 11.54%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 43.85 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.15 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 51.59 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 44.09 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.22

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at -30.54 %

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

Debtors Turnover Ratio

Lowest at 4.22 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio