Yunnan Energy New Material Co., Ltd. (002812) 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

Yunnan Energy New Material Co., Ltd.

Why is Yunnan Energy New Material Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 27.59% and Operating profit at -201.51% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 12.97% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 27.59% and Operating profit at -201.51% over the last 5 years

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

NET PROFIT(HY) At CNY -112.31 MM has Grown at -139.36%
OPERATING CASH FLOW(Y) Lowest at CNY -174.92 MM
INTEREST(HY) At CNY 165.57 MM has Grown at 8.92%

With ROE of -4.37%, it has a risky valuation with a 1.73 Price to Book Value

Over the past year, while the stock has generated a return of 183.57%, its profits have fallen by -174.2%
At the current price, the company has a high dividend yield of 0

Market Beating Performance

The stock has generated a return of 183.57% in the last 1 year, much higher than market (China Shanghai Composite) returns of 24.70%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Yunnan Energy New Material Co., Ltd. should be less than 10%
Overall Portfolio exposure to Packaging should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Packaging)

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

Is Yunnan Energy New Material Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Yunnan Energy New Material Co., Ltd.

183.57%

2.18

55.15%

China Shanghai Composite

24.7%

1.91

12.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

27.59%

EBIT Growth (5y)

-201.51%

EBIT to Interest (avg)

8.82

Debt to EBITDA (avg)

7.85

Net Debt to Equity (avg)

0.58

Sales to Capital Employed (avg)

0.27

Tax Ratio

19.03%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

9.70%

ROE (avg)

12.97%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.73

EV to EBIT

-51.76

EV to EBITDA

66.82

EV to Capital Employed

1.46

EV to Sales

5.21

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.82%

ROE (Latest)

-4.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

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

PRE-TAX PROFIT(Q)

At CNY 100.94 MM has Grown at 134.17%

INVENTORY TURNOVER RATIO(HY)

Highest at 3.5 times

NET SALES(Q)

Highest at CNY 3,780.4 MM

NET PROFIT(Q)

At CNY 6.79 MM has Grown at 102.89%

-18What is not working for the Company

NET PROFIT(HY)

At CNY -112.31 MM has Grown at -139.36%

OPERATING CASH FLOW(Y)

Lowest at CNY -174.92 MM

INTEREST(HY)

At CNY 165.57 MM has Grown at 8.92%

ROCE(HY)

Lowest at -4.31%

RAW MATERIAL COST(Y)

Grown by 15.43% (YoY

Here's what is working for Yunnan Energy New Material Co., Ltd.

Net Sales

At CNY 3,780.4 MM has Grown at 36.08%

over average net sales of the previous four periods of CNY 2,778.14 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 100.94 MM has Grown at 134.17%

over average net sales of the previous four periods of CNY -295.38 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

Highest at CNY 3,780.4 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY 6.79 MM has Grown at 102.89%

over average net sales of the previous four periods of CNY -235.11 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 3.5 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Yunnan Energy New Material Co., Ltd.

Operating Cash Flow

Lowest at CNY -174.92 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

At CNY 165.57 MM has Grown at 8.92%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 15.43% (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