Fujian Minfa Aluminium Co., Ltd. (002578) 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

Fujian Minfa Aluminium Co., Ltd.

Why is Fujian Minfa Aluminium Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.72%

The company has been able to generate a Return on Capital Employed (avg) of 2.72% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 3.93% and Operating profit at -190.10% over the last 5 years

With a fall in Net Sales of -12.32%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 11 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CNY -49.4 MM
ROCE(HY) Lowest at -1.03%
INVENTORY TURNOVER RATIO(HY) Lowest at 4.7 times

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 16.57%, its profits have fallen by -67.7%

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 Non - Ferrous Metals)

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

Is Fujian Minfa Aluminium Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Fujian Minfa Aluminium Co., Ltd.

16.57%

0.70

54.45%

China Shanghai Composite

16.01%

1.07

14.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.93%

EBIT Growth (5y)

-190.10%

EBIT to Interest (avg)

19.12

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

1.12

Tax Ratio

9.41%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.72%

ROE (avg)

2.88%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

507

Industry P/E

Price to Book Value

2.14

EV to EBIT

-408.52

EV to EBITDA

144.24

EV to Capital Employed

2.17

EV to Sales

1.65

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.53%

ROE (Latest)

0.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

1What is working for the Company

CASH AND EQV(HY)

Highest at CNY 1,486.15 MM

-38What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -49.4 MM

ROCE(HY)

Lowest at -1.03%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.7 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.24 times

INTEREST(Q)

At CNY 2.02 MM has Grown at 36.4%

RAW MATERIAL COST(Y)

Grown by 60.07% (YoY

NET SALES(Q)

Fallen at -12.32%

OPERATING PROFIT MARGIN(Q)

Lowest at -3.27 %

PRE-TAX PROFIT(Q)

Lowest at CNY -14.07 MM

NET PROFIT(Q)

Lowest at CNY -12.07 MM

EPS(Q)

Lowest at CNY -0.01

Here's what is working for Fujian Minfa Aluminium Co., Ltd.

Cash and Eqv

Highest at CNY 1,486.15 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 Fujian Minfa Aluminium Co., Ltd.

Pre-Tax Profit

At CNY -14.07 MM has Fallen at -191.94%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -12.07 MM has Fallen at -193.61%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -49.4 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

At CNY 2.02 MM has Grown at 36.4%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 4.7 times and Fallen

In each half year 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 3.24 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Fallen at -12.32%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit Margin

Lowest at -3.27 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -14.07 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 -12.07 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 60.07% (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