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

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 35.20% and Operating profit at 42.38% 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 820.85 MM has Grown at -10.65%
DEBTORS TURNOVER RATIO(HY) Lowest at 1.35 times
INTEREST(Q) At CNY 17.42 MM has Grown at 32.81%

With ROE of 4.74%, it has a expensive valuation with a 1.47 Price to Book Value

Over the past year, while the stock has generated a return of 16.30%, its profits have fallen by -7.3%
At the current price, the company has a high dividend yield of 0.2

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?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Qianjiang Biochemical Co., Ltd.

-17.47%

1.76

29.30%

China Shanghai Composite

21.43%

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)

18.86%

EBIT Growth (5y)

72.13%

EBIT to Interest (avg)

0.36

Debt to EBITDA (avg)

4.12

Net Debt to Equity (avg)

0.50

Sales to Capital Employed (avg)

0.33

Tax Ratio

46.75%

Dividend Payout Ratio

16.15%

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

0.44

EV to EBIT

12.80

EV to EBITDA

7.46

EV to Capital Employed

0.57

EV to Sales

1.58

PEG Ratio

0.29

Dividend Yield

0.61%

ROCE (Latest)

4.46%

ROE (Latest)

4.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 673.89 MM

RAW MATERIAL COST(Y)

Fallen by -34.58% (YoY

CASH AND EQV(HY)

Highest at CNY 1,829.25 MM

DEBT-EQUITY RATIO (HY)

Lowest at 29.76 %

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 549.81

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.7 times

NET SALES(Q)

Lowest at CNY 318.57 MM

OPERATING PROFIT(Q)

Lowest at CNY 48.54 MM

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

Operating Cash Flow

Highest at CNY 673.89 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 1,829.25 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 29.76 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -34.58% (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 318.57 MM has Fallen at -15.68%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 549.81

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 318.57 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 48.54 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 6.7 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio