Anhui Honglu Steel Construction (Group) Co., Ltd. (002541) 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

Anhui Honglu Steel Construction (Group) Co., Ltd.

Why is Anhui Honglu Steel Construction (Group) Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 7.93% and Operating profit at -3.54% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 12.89% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 7.93% and Operating profit at -3.54% over the last 5 years

Flat results in Mar 26

INTEREST(Q) At CNY 87.02 MM has Grown at 16.73%
INTEREST COVERAGE RATIO(Q) Lowest at 296.69
INVENTORY TURNOVER RATIO(HY) Lowest at 1.89 times

Underperformed the market in the last 1 year

The stock has generated a return of 4.84% in the last 1 year, much lower than market (China Shanghai Composite) returns of 21.43%

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 Industrial Manufacturing)

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

Is Anhui Honglu Steel Construction (Group) Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Anhui Honglu Steel Construction (Group) Co., Ltd.

-0.06%

-0.15

42.56%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.93%

EBIT Growth (5y)

-3.54%

EBIT to Interest (avg)

5.58

Debt to EBITDA (avg)

5.09

Net Debt to Equity (avg)

1.16

Sales to Capital Employed (avg)

0.98

Tax Ratio

6.87%

Dividend Payout Ratio

30.49%

Pledged Shares

Institutional Holding

ROCE (avg)

7.68%

ROE (avg)

12.89%

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

0.90

EV to EBIT

24.08

EV to EBITDA

14.43

EV to Capital Employed

0.96

EV to Sales

0.98

PEG Ratio

Dividend Yield

2.71%

ROCE (Latest)

3.98%

ROE (Latest)

6.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.73% (YoY

CASH AND EQV(HY)

Highest at CNY 4,764.46 MM

-7What is not working for the Company

INTEREST(Q)

At CNY 87.02 MM has Grown at 16.73%

INTEREST COVERAGE RATIO(Q)

Lowest at 296.69

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.89 times

OPERATING PROFIT(Q)

Lowest at CNY 258.18 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.92 %

Here's what is working for Anhui Honglu Steel Construction (Group) Co., Ltd.

Cash and Eqv

Highest at CNY 4,764.46 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -4.73% (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 Anhui Honglu Steel Construction (Group) Co., Ltd.

Interest

At CNY 87.02 MM has Grown at 16.73%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 296.69

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 258.18 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.92 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 1.89 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio