Why is Zhejiang Jianye Chemical Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 26.03%
- The company has been able to generate a Return on Capital Employed (avg) of 26.03% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 0.32% and Operating profit at 14.27% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 14.16% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 0.32% and Operating profit at 14.27% over the last 5 years
4
Negative results in Jun 26
- OPERATING CASH FLOW(Y) Lowest at CNY 200.04 MM
- ROCE(HY) Lowest at 7.69%
- NET PROFIT(Q) Lowest at CNY -7.71 MM
5
Below par performance in long term as well as near term
- Along with generating -20.72% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
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 Specialty Chemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Zhejiang Jianye Chemical Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Zhejiang Jianye Chemical Co., Ltd.
-20.54%
0.31
45.85%
China Shanghai Composite
3.23%
0.23
14.72%
Quality key factors
Factor
Value
Sales Growth (5y)
0.32%
EBIT Growth (5y)
14.27%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.52
Sales to Capital Employed (avg)
1.04
Tax Ratio
20.02%
Dividend Payout Ratio
70.66%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
28.77%
ROE (avg)
14.16%
Valuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
1.77
EV to EBIT
10.65
EV to EBITDA
8.63
EV to Capital Employed
2.73
EV to Sales
1.31
PEG Ratio
0.72
Dividend Yield
1.92%
ROCE (Latest)
25.62%
ROE (Latest)
11.08%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Bullish
Technical Movement
6What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -1.38% (YoY
CASH AND EQV(HY)
Highest at CNY 2,553.22 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 13.31 times
DEBTORS TURNOVER RATIO(HY)
Highest at 3.33 times
NET SALES(Q)
Highest at CNY 590.72 MM
OPERATING PROFIT(Q)
Highest at CNY 94.53 MM
-17What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 200.04 MM
ROCE(HY)
Lowest at 7.69%
NET PROFIT(Q)
Lowest at CNY -7.71 MM
EPS(Q)
Lowest at CNY -0.05
Here's what is working for Zhejiang Jianye Chemical Co., Ltd.
Net Sales
Highest at CNY 590.72 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Operating Profit
Highest at CNY 94.53 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CNY MM)
Cash and Eqv
Highest at CNY 2,553.22 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 13.31 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 3.33 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -1.38% (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 Zhejiang Jianye Chemical Co., Ltd.
Net Profit
At CNY -7.71 MM has Fallen at -112.59%
over average net sales of the previous four periods of CNY 61.26 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Operating Cash Flow
Lowest at CNY 200.04 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Net Profit
Lowest at CNY -7.71 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
EPS
Lowest at CNY -0.05
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)
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