Zhejiang Qianjiang Biochemical Co., Ltd. (600796) 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

Zhejiang Qianjiang Biochemical Co., Ltd.

Why is Zhejiang Qianjiang Biochemical Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.07%

The company has been able to generate a Return on Capital Employed (avg) of 3.07% 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 34.27% and Operating profit at 36.86% 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 4.01% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 6 consecutive quarters

NET SALES(HY) At CNY 833.32 MM has Grown at -22.12%
NET PROFIT(HY) At CNY 61.65 MM has Grown at -38.26%
ROCE(HY) Lowest at 5%

With ROE of 4.74%, it has a expensive valuation with a 0.49 Price to Book Value

Over the past year, while the stock has generated a return of 9.42%, its profits have fallen by -7.3%
At the current price, the company has a high dividend yield of 0.6

Real-Time Research Report

Verdict Report

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 Chemicals & Petrochemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Zhejiang Qianjiang Biochemical Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Qianjiang Biochemical Co., Ltd.

9.42%

1.19

34.83%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

34.27%

EBIT Growth (5y)

36.86%

EBIT to Interest (avg)

0.36

Debt to EBITDA (avg)

4.12

Net Debt to Equity (avg)

0.50

Sales to Capital Employed (avg)

0.36

Tax Ratio

46.75%

Dividend Payout Ratio

16.79%

Pledged Shares

Institutional Holding

ROCE (avg)

3.07%

ROE (avg)

4.01%

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

0.49

EV to EBIT

18.57

EV to EBITDA

7.81

EV to Capital Employed

0.64

EV to Sales

1.83

PEG Ratio

Dividend Yield

0.56%

ROCE (Latest)

3.45%

ROE (Latest)

4.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

No Trend

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 457.32 MM

RAW MATERIAL COST(Y)

Fallen by -20.22% (YoY

-23What is not working for the Company

NET SALES(HY)

At CNY 833.32 MM has Grown at -22.12%

NET PROFIT(HY)

At CNY 61.65 MM has Grown at -38.26%

ROCE(HY)

Lowest at 5%

DEBT-EQUITY RATIO (HY)

Highest at 50.41 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.86%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.47%

OPERATING PROFIT(Q)

Lowest at CNY 36.02 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.7 %

Here's what is working for Zhejiang Qianjiang Biochemical Co., Ltd.

Operating Cash Flow

Highest at CNY 457.32 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -20.22% (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 Qianjiang Biochemical Co., Ltd.

Net Sales

At CNY 833.32 MM has Grown at -22.12%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Net Profit

At CNY 61.65 MM has Grown at -38.26%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 50.41 % and Grown

In each half year 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

Inventory Turnover Ratio

Lowest at 6.86% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 1.47% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at CNY 36.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 9.7 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales