Yueyang Forest & Paper Co., Ltd. (600963) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Yueyang Forest & Paper Co., Ltd.

Why is Yueyang Forest & Paper Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.31%

The company has been able to generate a Return on Capital Employed (avg) of 2.31% signifying low profitability per unit of total capital (equity and debt)

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 5.14% and Operating profit at -6.23% 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 3.31% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 5.14% and Operating profit at -6.23% over the last 5 years

Flat results in Mar 25

INTEREST(HY) At CNY 109.17 MM has Grown at 54.83%
PRE-TAX PROFIT(Q) At CNY 43.65 MM has Fallen at -54.77%
OPERATING CASH FLOW(Y) Lowest at CNY 234.36 MM

With ROE of 4.46%, it has a very attractive valuation with a 0.98 Price to Book Value

Over the past year, while the stock has generated a return of -16.50%, its profits have risen by 353.5% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.7

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Yueyang Forest & Paper Co., Ltd. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Yueyang Forest & Paper Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Yueyang Forest & Paper Co., Ltd.

-16.5%

0.03

27.98%

China Shanghai Composite

15.44%

1.06

14.51%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.14%

EBIT Growth (5y)

-6.23%

EBIT to Interest (avg)

3.32

Debt to EBITDA (avg)

8.44

Net Debt to Equity (avg)

1.04

Sales to Capital Employed (avg)

0.61

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

32.00%

Pledged Shares

Institutional Holding

ROCE (avg)

2.31%

ROE (avg)

3.31%

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

0.98

EV to EBIT

44.27

EV to EBITDA

16.69

EV to Capital Employed

0.99

EV to Sales

1.87

PEG Ratio

0.06

Dividend Yield

0.68%

ROCE (Latest)

2.23%

ROE (Latest)

4.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

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

14What is working for the Company

NET SALES(HY)

At CNY 5,041.5 MM has Grown at 27.73%

NET PROFIT(HY)

Higher at CNY 308.64 MM

CASH AND EQV(HY)

Highest at CNY 2,260.55 MM

-15What is not working for the Company

INTEREST(HY)

At CNY 109.17 MM has Grown at 54.83%

PRE-TAX PROFIT(Q)

At CNY 43.65 MM has Fallen at -54.77%

OPERATING CASH FLOW(Y)

Lowest at CNY 234.36 MM

NET PROFIT(Q)

At CNY 46.92 MM has Fallen at -41.96%

RAW MATERIAL COST(Y)

Grown by 10.47% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 103.86 %

Here's what is working for Yueyang Forest & Paper Co., Ltd.

Net Sales

At CNY 5,041.5 MM has Grown at 27.73%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 2,260.55 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Yueyang Forest & Paper Co., Ltd.

Interest

At CNY 109.17 MM has Grown at 54.83%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 43.65 MM has Fallen at -54.77%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 46.92 MM has Fallen at -41.96%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 234.36 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 103.86 %

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 10.47% (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