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.

19.06%

0.85

40.97%

China Shanghai Composite

23.91%

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)

19.59%

EBIT Growth (5y)

-329.24%

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)

1.74

Tax Ratio

88.75%

Dividend Payout Ratio

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

NA (Loss Making)

Industry P/E

Price to Book Value

2.69

EV to EBIT

-29.82

EV to EBITDA

-60.28

EV to Capital Employed

1.79

EV to Sales

0.95

PEG Ratio

Dividend Yield

0.18%

ROCE (Latest)

-6.00%

ROE (Latest)

-3.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,095.25 MM

-34What is not working for the Company

ROCE(HY)

Lowest at -1.32%

RAW MATERIAL COST(Y)

Grown by 78.39% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.86 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 14.18 times

NET SALES(Q)

Lowest at CNY 6,538.68 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3 %

PRE-TAX PROFIT(Q)

Lowest at CNY -265.75 MM

NET PROFIT(Q)

Lowest at CNY -177.29 MM

EPS(Q)

Lowest at CNY -0.03

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

Operating Cash Flow

Highest at CNY 2,095.25 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)

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

Pre-Tax Profit

At CNY -265.75 MM has Fallen at -462.69%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -177.29 MM has Fallen at -116.34%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 6,538.68 MM has Fallen at -20.75%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 6,538.68 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit Margin

Lowest at -3 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -265.75 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -177.29 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.03

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 7.86 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 14.18 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 78.39% (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