Guangdong Xinhui Meida Nylon Co., Ltd. (000782) 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

Guangdong Xinhui Meida Nylon Co., Ltd.

Why is Guangdong Xinhui Meida Nylon Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.57%

The company has been able to generate a Return on Capital Employed (avg) of 1.57% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -1.34% and Operating profit at -210.95% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 2.46% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -1.34% and Operating profit at -210.95% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(HY) At CNY -60.1 MM has Grown at -152.85%
NET SALES(HY) At CNY 1,279.32 MM has Grown at -12.83%
ROCE(HY) Lowest at -9.43%

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 57.03%, its profits have fallen by -298.7%

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 Garments & Apparels)

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

Is Guangdong Xinhui Meida Nylon Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Xinhui Meida Nylon Co., Ltd.

57.03%

1.78

44.34%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.34%

EBIT Growth (5y)

-210.95%

EBIT to Interest (avg)

-1.53

Debt to EBITDA (avg)

4.16

Net Debt to Equity (avg)

0.19

Sales to Capital Employed (avg)

1.07

Tax Ratio

13.72%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.57%

ROE (avg)

2.46%

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

1.74

EV to EBIT

-29.04

EV to EBITDA

-48.76

EV to Capital Employed

1.42

EV to Sales

1.64

PEG Ratio

Dividend Yield

ROCE (Latest)

-4.90%

ROE (Latest)

-7.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY -15.19 MM

PRE-TAX PROFIT(Q)

At CNY -5.37 MM has Grown at 82.88%

NET PROFIT(Q)

At CNY -5.37 MM has Grown at 80.78%

-22What is not working for the Company

NET PROFIT(HY)

At CNY -60.1 MM has Grown at -152.85%

NET SALES(HY)

At CNY 1,279.32 MM has Grown at -12.83%

ROCE(HY)

Lowest at -9.43%

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.87 times

INTEREST(Q)

At CNY 1.11 MM has Grown at 40.11%

RAW MATERIAL COST(Y)

Grown by 39.36% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 74.76 %

Here's what is working for Guangdong Xinhui Meida Nylon Co., Ltd.

Operating Cash Flow

Highest at CNY -15.19 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)

Pre-Tax Profit

At CNY -5.37 MM has Grown at 82.88%

over average net sales of the previous four periods of CNY -31.35 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -5.37 MM has Grown at 80.78%

over average net sales of the previous four periods of CNY -27.94 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Here's what is not working for Guangdong Xinhui Meida Nylon Co., Ltd.

Interest

At CNY 1.11 MM has Grown at 40.11%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 1,279.32 MM has Grown at -12.83%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 5.87 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

Debt-Equity Ratio

Highest at 74.76 %

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

Raw Material Cost

Grown by 39.36% (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