China Hainan Rubber Industry Group Co., Ltd. (601118) 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

China Hainan Rubber Industry Group Co., Ltd.

Why is China Hainan Rubber Industry Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

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 28.00% and Operating profit at -6.80% 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 1.39% signifying low profitability per unit of shareholders funds

Negative results in Sep 25

PRE-TAX PROFIT(Q) At CNY -132.47 MM has Fallen at -79.11%
NET PROFIT(Q) At CNY -91.5 MM has Fallen at -78.79%
NET SALES(Q) At CNY 11,108.19 MM has Fallen at -18.88%

With ROE of 1.14%, it has a very expensive valuation with a 2.30 Price to Book Value

Over the past year, while the stock has generated a return of 43.88%, its profits have fallen by -45.6%

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 Industrial Products)

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

Is China Hainan Rubber Industry Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

China Hainan Rubber Industry Group Co., Ltd.

30.5%

0.85

40.97%

China Shanghai Composite

13.33%

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)

28.00%

EBIT Growth (5y)

-6.80%

EBIT to Interest (avg)

-1.26

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

1.05

Sales to Capital Employed (avg)

1.68

Tax Ratio

88.75%

Dividend Payout Ratio

45.04%

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

1.39%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

202

Industry P/E

Price to Book Value

2.30

EV to EBIT

-60.21

EV to EBITDA

111.58

EV to Capital Employed

1.66

EV to Sales

0.60

PEG Ratio

Dividend Yield

0.21%

ROCE (Latest)

-2.77%

ROE (Latest)

1.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

3What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 117.97 %

CASH AND EQV(HY)

Highest at CNY 12,518.39 MM

-11What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -132.47 MM has Fallen at -79.11%

NET PROFIT(Q)

At CNY -91.5 MM has Fallen at -78.79%

NET SALES(Q)

At CNY 11,108.19 MM has Fallen at -18.88%

RAW MATERIAL COST(Y)

Grown by 77.14% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -287.5 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -2.59 %

Here's what is working for China Hainan Rubber Industry Group Co., Ltd.

Debt-Equity Ratio

Lowest at 117.97 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Cash and Eqv

Highest at CNY 12,518.39 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for China Hainan Rubber Industry Group Co., Ltd.

Pre-Tax Profit

At CNY -132.47 MM has Fallen at -79.11%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -91.5 MM has Fallen at -78.79%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 11,108.19 MM has Fallen at -18.88%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -287.5 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -2.59 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 77.14% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales