Zibo Qixiang Tengda Chemical Co., Ltd. (002408) 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

Zibo Qixiang Tengda Chemical Co., Ltd.

Why is Zibo Qixiang Tengda Chemical Co., Ltd. ?

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 1.00% and Operating profit at -54.98% 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 6.51% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 1.00% and Operating profit at -54.98% over the last 5 years

INTEREST(HY) At CNY 122.66 MM has Grown at 33.51%
INTEREST COVERAGE RATIO(Q) Lowest at 73.03
RAW MATERIAL COST(Y) Grown by 43.66% (YoY)

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 -9.09%, its profits have risen by 83%
At the current price, the company has a high dividend yield of 1.9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.09% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Specialty Chemicals)

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

Is Zibo Qixiang Tengda Chemical Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zibo Qixiang Tengda Chemical Co., Ltd.

-10.53%

-0.18

27.01%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.00%

EBIT Growth (5y)

-54.98%

EBIT to Interest (avg)

5.20

Debt to EBITDA (avg)

3.07

Net Debt to Equity (avg)

0.65

Sales to Capital Employed (avg)

1.12

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

803.57%

Pledged Shares

Institutional Holding

ROCE (avg)

6.27%

ROE (avg)

6.51%

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

1.13

EV to EBIT

1181.41

EV to EBITDA

9.54

EV to Capital Employed

1.08

EV to Sales

0.86

PEG Ratio

Dividend Yield

1.93%

ROCE (Latest)

0.09%

ROE (Latest)

-0.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

9What is working for the Company

NET PROFIT(HY)

Higher at CNY -158.53 MM

ROCE(HY)

Highest at 0.04%

-12What is not working for the Company

INTEREST(HY)

At CNY 122.66 MM has Grown at 33.51%

INTEREST COVERAGE RATIO(Q)

Lowest at 73.03

RAW MATERIAL COST(Y)

Grown by 43.66% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 65.45 %

NET SALES(Q)

At CNY 5,585.5 MM has Fallen at -10.96%

OPERATING PROFIT(Q)

Lowest at CNY 32.94 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.59 %

NET PROFIT(Q)

At CNY 5.77 MM has Fallen at -29.39%

Here's what is not working for Zibo Qixiang Tengda Chemical Co., Ltd.

Interest

At CNY 122.66 MM has Grown at 33.51%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 73.03

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At CNY 5,585.5 MM has Fallen at -10.96%

over average net sales of the previous four periods of CNY 6,272.87 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 32.94 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.59 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY 5.77 MM has Fallen at -29.39%

over average net sales of the previous four periods of CNY 8.18 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 65.45 %

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

Raw Material Cost

Grown by 43.66% (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

Non Operating Income

Highest at CNY 1.63 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income