Zhejiang Xinan Chemical Industrial Group Co., Ltd. (600596) 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 Xinan Chemical Industrial Group Co., Ltd.

Why is Zhejiang Xinan Chemical Industrial Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.35% and Operating profit at -185.04% over the last 5 years

The company has declared Negative results for the last 11 consecutive quarters

NET PROFIT(HY) At CNY -41.51 MM has Grown at -151.3%
INTEREST(HY) At CNY 38.73 MM has Grown at 20.47%
OPERATING CASH FLOW(Y) Lowest at CNY 367.16 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 23.93%, its profits have fallen by -102.4%
At the current price, the company has a high dividend yield of 1.1

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 Xinan Chemical Industrial Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Xinan Chemical Industrial Group Co., Ltd.

25.63%

0.91

35.79%

China Shanghai Composite

15.19%

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)

5.35%

EBIT Growth (5y)

-185.04%

EBIT to Interest (avg)

40.14

Debt to EBITDA (avg)

1.70

Net Debt to Equity (avg)

0.19

Sales to Capital Employed (avg)

0.91

Tax Ratio

50.47%

Dividend Payout Ratio

262.47%

Pledged Shares

Institutional Holding

ROCE (avg)

19.82%

ROE (avg)

13.18%

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

0.84

EV to EBIT

-85.85

EV to EBITDA

19.59

EV to Capital Employed

0.86

EV to Sales

0.89

PEG Ratio

Dividend Yield

1.10%

ROCE (Latest)

-1.01%

ROE (Latest)

-0.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

2What is working for the Company

NET PROFIT(Q)

At CNY 33.68 MM has Grown at 136%

-22What is not working for the Company

NET PROFIT(HY)

At CNY -41.51 MM has Grown at -151.3%

INTEREST(HY)

At CNY 38.73 MM has Grown at 20.47%

OPERATING CASH FLOW(Y)

Lowest at CNY 367.16 MM

ROCE(HY)

Lowest at -0.21%

RAW MATERIAL COST(Y)

Grown by 11.97% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 19.21 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.59%

OPERATING PROFIT(Q)

Lowest at CNY -36.19 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1 %

Here's what is working for Zhejiang Xinan Chemical Industrial Group Co., Ltd.

Net Profit

At CNY 33.68 MM has Grown at 136%

over average net sales of the previous four periods of CNY 14.27 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Here's what is not working for Zhejiang Xinan Chemical Industrial Group Co., Ltd.

Interest

At CNY 38.73 MM has Grown at 20.47%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 367.16 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)

Operating Profit

Lowest at CNY -36.19 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -1 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 19.21 %

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 4.59%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 11.97% (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