Beijing Shougang Co., Ltd. (000959) 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

Beijing Shougang Co., Ltd.

Why is Beijing Shougang 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 8.25% and Operating profit at -14.30% 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 6.97% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.25% and Operating profit at -14.30% over the last 5 years

Positive results in Mar 25

ROCE(HY) Highest at 1.66%
NET PROFIT(Q) At CNY 327.88 MM has Grown at 175.88%
RAW MATERIAL COST(Y) Fallen by -169.67% (YoY)

With ROE of 1.80%, it has a expensive valuation with a 0.48 Price to Book Value

Over the past year, while the stock has generated a return of 30.70%, its profits have risen by 26.8% ; the PEG ratio of the company is 1
At the current price, the company has a high dividend yield of 0.7

Market Beating Performance

The stock has generated a return of 30.70% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Beijing Shougang Co., Ltd. should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

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

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

Is Beijing Shougang Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Beijing Shougang Co., Ltd.

-100.0%

1.51

33.49%

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)

8.25%

EBIT Growth (5y)

-14.30%

EBIT to Interest (avg)

2.21

Debt to EBITDA (avg)

4.03

Net Debt to Equity (avg)

0.69

Sales to Capital Employed (avg)

1.17

Tax Ratio

13.93%

Dividend Payout Ratio

36.18%

Pledged Shares

Institutional Holding

ROCE (avg)

4.89%

ROE (avg)

6.97%

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

0.48

EV to EBIT

42.43

EV to EBITDA

6.15

EV to Capital Employed

0.69

EV to Sales

0.57

PEG Ratio

0.99

Dividend Yield

0.72%

ROCE (Latest)

1.63%

ROE (Latest)

1.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

15What is working for the Company

ROCE(HY)

Highest at 1.66%

NET PROFIT(Q)

At CNY 327.88 MM has Grown at 175.88%

RAW MATERIAL COST(Y)

Fallen by -169.67% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 69.75 %

PRE-TAX PROFIT(Q)

At CNY 426.72 MM has Grown at 59.88%

-8What is not working for the Company

NET SALES(HY)

At CNY 52,437 MM has Grown at -9.52%

INTEREST COVERAGE RATIO(Q)

Lowest at 203.76

OPERATING PROFIT(Q)

Lowest at CNY 464.4 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.77 %

Here's what is working for Beijing Shougang Co., Ltd.

Net Profit

At CNY 327.88 MM has Grown at 175.88%

over average net sales of the previous four periods of CNY 118.85 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

At CNY 426.72 MM has Grown at 59.88%

over average net sales of the previous four periods of CNY 266.9 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Lowest at 69.75 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -169.67% (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 Beijing Shougang Co., Ltd.

Interest Coverage Ratio

Lowest at 203.76

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 52,437 MM has Grown at -9.52%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 464.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.77 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales