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Zhejiang Xinhua Chemical Co., Ltd.

  • Market Cap: Mid Cap
  • Industry: Specialty Chemicals
  • ISIN: CNE100003L60
  • SHG: 603867
CNY
33.51
0.24 (0.72%)

Sep 22

SHG

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Zhejiang Xinhua Chemical Co., Ltd.

Why is Zhejiang Xinhua Chemical Co., Ltd. ?

1
Poor Management Efficiency with a low ROCE of 15.54%
  • The company has been able to generate a Return on Capital Employed (avg) of 15.54% 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 2.59% and Operating profit at 3.87% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 14.37% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 2.59% and Operating profit at 3.87% over the last 5 years
4
Flat results in Jun 26
  • INTEREST(Q) At CNY 1.49 MM has Grown at 10.59%
  • RAW MATERIAL COST(Y) Grown by 15.75% (YoY)
  • CASH AND EQV(HY) Lowest at CNY 1,099.85 MM
5
With ROE of 9.92%, it has a very attractive valuation with a 2.68 Price to Book Value
  • Over the past year, while the stock has generated a return of 9.62%, its profits have risen by 15.1% ; the PEG ratio of the company is 2.7
  • At the current price, the company has a high dividend yield of 0.9
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Zhejiang Xinhua Chemical Co., Ltd. should be less than 10%
  2. 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 Xinhua Chemical Co., Ltd. for you?

High Risk, High Return

Absolute
Risk Adjusted
Volatility
Zhejiang Xinhua Chemical Co., Ltd.
10.41%
0.67
51.56%
China Shanghai Composite
3.23%
0.23
14.72%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
2.59%
EBIT Growth (5y)
3.87%
EBIT to Interest (avg)
21.54
Debt to EBITDA (avg)
0.46
Net Debt to Equity (avg)
0.18
Sales to Capital Employed (avg)
0.83
Tax Ratio
16.51%
Dividend Payout Ratio
33.04%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
13.44%
ROE (avg)
14.37%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
27
Industry P/E
Price to Book Value
2.68
EV to EBIT
24.37
EV to EBITDA
16.37
EV to Capital Employed
2.65
EV to Sales
2.82
PEG Ratio
2.66
Dividend Yield
0.88%
ROCE (Latest)
10.86%
ROE (Latest)
9.92%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company
OPERATING CASH FLOW(Y)

Highest at CNY 342.73 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 53.15%

NET PROFIT(9M)

Higher at CNY 236.98 MM

DIVIDEND PER SHARE(HY)

Highest at CNY 3.41

NET SALES(Q)

Highest at CNY 876.58 MM

-5What is not working for the Company
INTEREST(Q)

At CNY 1.49 MM has Grown at 10.59%

RAW MATERIAL COST(Y)

Grown by 15.75% (YoY

CASH AND EQV(HY)

Lowest at CNY 1,099.85 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.72 times

Here's what is working for Zhejiang Xinhua Chemical Co., Ltd.

Operating Cash Flow
Highest at CNY 342.73 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)

Net Sales
Highest at CNY 876.58 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Net Sales
At CNY 876.58 MM has Grown at 16.87%
over average net sales of the previous four periods of CNY 750.05 MM
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Dividend per share
Highest at CNY 3.41
in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (CNY)

Net Profit
Higher at CNY 236.98 MM
than preceding 12 month period ended Jun 2026
MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Dividend Payout Ratio
Highest at 53.15%
in the last five years
MOJO Watch
Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Zhejiang Xinhua Chemical Co., Ltd.

Interest
At CNY 1.49 MM has Grown at 10.59%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv
Lowest at CNY 1,099.85 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio
Lowest at 5.72 times
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 15.75% (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

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