Gansu Jiu Steel Group Hongxing Iron & Steel Co., Ltd. (600307) 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

Gansu Jiu Steel Group Hongxing Iron & Steel Co., Ltd.

Why is Gansu Jiu Steel Group Hongxing Iron & Steel Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.30%

Poor long term growth as Net Sales has grown by an annual rate of -2.62% and Operating profit at -203.94% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared Negative results for the last 6 consecutive quarters

DEBT-EQUITY RATIO (HY) Highest at 469.29 %
INTEREST(Q) At CNY 165.22 MM has Grown at 30.6%
CASH AND EQV(HY) Lowest at CNY 5,475.59 MM

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 23.84%, its profits have fallen by -41.5%

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 Ferrous Metals)

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

Is Gansu Jiu Steel Group Hongxing Iron & Steel Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Gansu Jiu Steel Group Hongxing Iron & Steel Co., Ltd.

2.17%

1.47

38.03%

China Shanghai Composite

16.78%

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)

-5.91%

EBIT Growth (5y)

-188.62%

EBIT to Interest (avg)

-1.00

Debt to EBITDA (avg)

359.48

Net Debt to Equity (avg)

4.31

Sales to Capital Employed (avg)

0.88

Tax Ratio

1.21%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.30%

ROE (avg)

3.47%

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

1.84

EV to EBIT

-43.71

EV to EBITDA

249.09

EV to Capital Employed

1.12

EV to Sales

1.40

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.55%

ROE (Latest)

-32.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 284.32 MM

RAW MATERIAL COST(Y)

Fallen by -43.48% (YoY

PRE-TAX PROFIT(Q)

At CNY -170.22 MM has Grown at 63.99%

NET PROFIT(Q)

At CNY -181.88 MM has Grown at 63.59%

-19What is not working for the Company

INTEREST(HY)

At CNY 352.42 MM has Grown at 26.45%

NET PROFIT(HY)

At CNY -1,469.37 MM has Grown at -31.74%

DEBT-EQUITY RATIO (HY)

Highest at 625.73 %

CASH AND EQV(HY)

Lowest at CNY 4,879.01 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.36 times

NET SALES(Q)

At CNY 6,978.58 MM has Fallen at -8.35%

Here's what is working for Gansu Jiu Steel Group Hongxing Iron & Steel Co., Ltd.

Operating Cash Flow

Highest at CNY 284.32 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY -170.22 MM has Grown at 63.99%

over average net sales of the previous four periods of CNY -472.72 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -181.88 MM has Grown at 63.59%

over average net sales of the previous four periods of CNY -499.53 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -43.48% (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 Gansu Jiu Steel Group Hongxing Iron & Steel Co., Ltd.

Interest

At CNY 352.42 MM has Grown at 26.45%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 625.73 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales

At CNY 6,978.58 MM has Fallen at -8.35%

over average net sales of the previous four periods of CNY 7,614.74 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 4,879.01 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 4.36 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio