Zhejiang Jiahua Energy Chemical Industry Co., Ltd. (600273) 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

Zhejiang Jiahua Energy Chemical Industry Co., Ltd.

Why is Zhejiang Jiahua Energy Chemical Industry Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 13.40% and Operating profit at -4.74% over the last 5 years

OPERATING CASH FLOW(Y) Lowest at CNY 627.15 MM
INTEREST COVERAGE RATIO(Q) Lowest at 2,663.61
RAW MATERIAL COST(Y) Grown by 27.81% (YoY)

With ROE of 10.34%, it has a very attractive valuation with a 1.09 Price to Book Value

Over the past year, while the stock has generated a return of 38.93%, its profits have fallen by -1.7%
At the current price, the company has a high dividend yield of 5

Market Beating Performance

The stock has generated a return of 38.93% 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 Zhejiang Jiahua Energy Chemical Industry 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 Zhejiang Jiahua Energy Chemical Industry Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Jiahua Energy Chemical Industry Co., Ltd.

10.8%

1.60

29.70%

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)

13.40%

EBIT Growth (5y)

-4.74%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

0.84

Tax Ratio

11.63%

Dividend Payout Ratio

54.24%

Pledged Shares

Institutional Holding

ROCE (avg)

17.33%

ROE (avg)

14.56%

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

1.09

EV to EBIT

10.68

EV to EBITDA

6.29

EV to Capital Employed

1.09

EV to Sales

1.21

PEG Ratio

Dividend Yield

5.01%

ROCE (Latest)

10.17%

ROE (Latest)

10.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 12.3 times

NET SALES(Q)

Highest at CNY 2,724.89 MM

-22What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 627.15 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 2,663.61

RAW MATERIAL COST(Y)

Grown by 27.81% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 7.14 %

INTEREST(Q)

Highest at CNY 7.7 MM

OPERATING PROFIT(Q)

Lowest at CNY 205.21 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.53 %

PRE-TAX PROFIT(Q)

Lowest at CNY 227.92 MM

NET PROFIT(Q)

Lowest at CNY 201.24 MM

Here's what is working for Zhejiang Jiahua Energy Chemical Industry Co., Ltd.

Net Sales

Highest at CNY 2,724.89 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 12.3 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 Zhejiang Jiahua Energy Chemical Industry Co., Ltd.

Interest

At CNY 7.7 MM has Grown at 43.97%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 2,663.61

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 627.15 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 7.7 MM

in the last five periods and Increased by 43.97% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 205.21 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.53 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 227.92 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 201.24 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 7.14 %

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 27.81% (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