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

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 32.75% and Operating profit at 15.17% 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 63.48%, 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 hold?

Overall Portfolio exposure to Baotou Huazi Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Agricultural Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Baotou Huazi Industry Co., Ltd.

58.55%

3.81

44.30%

China Shanghai Composite

21.43%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

80.31%

EBIT Growth (5y)

22.49%

EBIT to Interest (avg)

-16.12

Debt to EBITDA (avg)

2.82

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

0.32

Tax Ratio

100.00%

Dividend Payout Ratio

18.49%

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

Industry P/E

Price to Book Value

2.98

EV to EBIT

177.23

EV to EBITDA

74.82

EV to Capital Employed

2.84

EV to Sales

7.19

PEG Ratio

1.14

Dividend Yield

ROCE (Latest)

1.60%

ROE (Latest)

3.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

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

27What is working for the Company

NET SALES(HY)

At CNY 382.15 MM has Grown at 129.17%

PRE-TAX PROFIT(Q)

At CNY 15.18 MM has Grown at 877.11%

ROCE(HY)

Highest at 4.09%

INVENTORY TURNOVER RATIO(HY)

Highest at 10.19 times

RAW MATERIAL COST(Y)

Fallen by -347.15% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 14.49 times

NET PROFIT(Q)

At CNY 20.51 MM has Grown at 61.9%

-12What is not working for the Company

INTEREST(HY)

At CNY 14.13 MM has Grown at 33.76%

OPERATING PROFIT(Q)

Lowest at CNY -0.23 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.14 %

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

Net Sales

At CNY 382.15 MM has Grown at 129.17%

Year on Year (YoY)

MOJO Watch

Sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 15.18 MM has Grown at 877.11%

over average net sales of the previous four periods of CNY 1.55 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Highest at 10.19 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Profit

At CNY 20.51 MM has Grown at 61.9%

over average net sales of the previous four periods of CNY 12.67 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debtors Turnover Ratio

Highest at 14.49 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -347.15% (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.

Interest

At CNY 14.13 MM has Grown at 33.76%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -0.23 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -0.14 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales