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

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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 31.23% and Operating profit at 7.34% 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 Mar 25

NET PROFIT(HY) At CNY 424.21 MM has Grown at -46.24%

With ROE of 1.14%, it has a very expensive valuation with a 2.27 Price to Book Value

Over the past year, while the stock has generated a return of -4.68%, its profits have fallen by -45.6%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 14.77% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -4.68% returns

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Hainan Rubber Industry Group Co., Ltd.

-4.68%

0.12

29.94%

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)

31.23%

EBIT Growth (5y)

7.34%

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)

1.56

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

198

Industry P/E

Price to Book Value

2.27

EV to EBIT

-59.56

EV to EBITDA

110.38

EV to Capital Employed

1.65

EV to Sales

0.59

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

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,813.54 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 20.6%

RAW MATERIAL COST(Y)

Fallen by -39.06% (YoY

CASH AND EQV(HY)

Highest at CNY 12,503.6 MM

DEBT-EQUITY RATIO (HY)

Lowest at 122.27 %

INVENTORY TURNOVER RATIO(HY)

Highest at 9.76%

NET SALES(Q)

At CNY 10,015.74 MM has Grown at 23.35%

PRE-TAX PROFIT(Q)

At CNY -47.23 MM has Grown at 77.89%

NET PROFIT(Q)

At CNY -81.95 MM has Grown at 55.45%

-9What is not working for the Company

NET PROFIT(HY)

At CNY 424.21 MM has Grown at -46.24%

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

Operating Cash Flow

Highest at CNY 1,813.54 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Highest at 20.6% and Grown

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

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

At CNY 10,015.74 MM has Grown at 23.35%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -47.23 MM has Grown at 77.89%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -81.95 MM has Grown at 55.45%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 12,503.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 122.27 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 9.76%

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 -39.06% (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