Baotou Huazi Industry Co., Ltd. (600191) 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

Baotou Huazi Industry Co., Ltd.

Why is Baotou Huazi Industry Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.13%

The company has been able to generate a Return on Capital Employed (avg) of 0.13% signifying low profitability per unit of total capital (equity and debt)

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 37.11% and Operating profit at 14.54% 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 0.66% signifying low profitability per unit of shareholders funds

With ROE of 1.38%, it has a very expensive valuation with a 2.35 Price to Book Value

Over the past year, while the stock has generated a return of 95.25%, its profits have risen by 217.6% ; the PEG ratio of the company is 0.8

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 Other Agricultural Products)

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

Is Baotou Huazi Industry Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Baotou Huazi Industry Co., Ltd.

95.25%

3.18

51.98%

China Shanghai Composite

14.77%

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)

37.11%

EBIT Growth (5y)

14.54%

EBIT to Interest (avg)

-16.12

Debt to EBITDA (avg)

2.82

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

0.33

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.13%

ROE (avg)

0.66%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

171

Industry P/E

Price to Book Value

2.35

EV to EBIT

-3571.94

EV to EBITDA

125.91

EV to Capital Employed

2.22

EV to Sales

8.33

PEG Ratio

0.78

Dividend Yield

ROCE (Latest)

-0.06%

ROE (Latest)

1.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -9.84% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 5.5%

NET PROFIT(Q)

At CNY 10.81 MM has Grown at 69.92%

-24What is not working for the Company

INTEREST(HY)

At CNY 10.56 MM has Grown at 11.68%

PRE-TAX PROFIT(Q)

At CNY -11.96 MM has Fallen at -486.39%

DEBT-EQUITY RATIO (HY)

Highest at 20.45 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.27%

NET SALES(Q)

Lowest at CNY 65.84 MM

OPERATING PROFIT(Q)

Lowest at CNY -7.68 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -11.67 %

Here's what is working for Baotou Huazi Industry Co., Ltd.

Net Profit

At CNY 10.81 MM has Grown at 69.92%

over average net sales of the previous four periods of CNY 6.36 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 5.5%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -9.84% (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 Baotou Huazi Industry Co., Ltd.

Net Sales

At CNY 65.84 MM has Fallen at -48.43%

over average net sales of the previous four periods of CNY 127.67 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -11.96 MM has Fallen at -486.39%

over average net sales of the previous four periods of CNY 3.1 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Interest

At CNY 10.56 MM has Grown at 11.68%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 65.84 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -7.68 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -11.67 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 20.45 %

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

Debtors Turnover Ratio

Lowest at 5.27%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio