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. ?

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 11.28% and Operating profit at -0.77% 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 12.89% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.28% and Operating profit at -0.77% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 623.95 MM
NET PROFIT(9M) At CNY 496.28 MM has Grown at -24.29%
ROCE(HY) Lowest at 6.33%

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, Medium Return

Absolute

Risk Adjusted

Volatility

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

11.8%

0.31

41.25%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.28%

EBIT Growth (5y)

-0.77%

EBIT to Interest (avg)

5.58

Debt to EBITDA (avg)

5.09

Net Debt to Equity (avg)

1.16

Sales to Capital Employed (avg)

1.04

Tax Ratio

6.87%

Dividend Payout Ratio

32.04%

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

1.25

EV to EBIT

32.52

EV to EBITDA

16.02

EV to Capital Employed

1.11

EV to Sales

1.11

PEG Ratio

Dividend Yield

2.06%

ROCE (Latest)

3.42%

ROE (Latest)

6.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

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 -29.06% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 279.14 MM

-16What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 623.95 MM

NET PROFIT(9M)

At CNY 496.28 MM has Grown at -24.29%

ROCE(HY)

Lowest at 6.33%

DEBT-EQUITY RATIO (HY)

Highest at 128.92 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.76 times

INTEREST COVERAGE RATIO(Q)

Lowest at 288.47

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.02 times

OPERATING PROFIT(Q)

Lowest at CNY 256.74 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.78 %

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

Pre-Tax Profit

Highest at CNY 279.14 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -29.06% (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.

Operating Cash Flow

Lowest at CNY 623.95 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)

Interest Coverage Ratio

Lowest at 288.47

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 128.92 % and Grown

In each half year 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

Debtors Turnover Ratio

Lowest at 5.76 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Profit

At CNY 496.28 MM has Grown at -24.29%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 256.74 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.78 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 2.02 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio