Hainan Airlines Holding Co., Ltd. (600221) 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

Hainan Airlines Holding Co., Ltd.

Why is Hainan Airlines Holding Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.11%

Poor long term growth as Net Sales has grown by an annual rate of 13.38% and Operating profit at 16.32% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at 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 1.96%, its profits have fallen by -135.4%

Underperformed the market in the last 1 year

The stock has generated a return of 1.96% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hainan Airlines Holding Co., Ltd. should be less than 10%
Overall Portfolio exposure to Airline should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Airline)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Hainan Airlines Holding Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Hainan Airlines Holding Co., Ltd.

7.52%

0.65

32.00%

China Shanghai Composite

19.22%

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)

18.07%

EBIT Growth (5y)

15.35%

EBIT to Interest (avg)

-2.29

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

23.56

Sales to Capital Employed (avg)

0.89

Tax Ratio

5.26%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.11%

ROE (avg)

27.53%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

8.87

EV to EBIT

61.18

EV to EBITDA

11.32

EV to Capital Employed

1.87

EV to Sales

1.69

PEG Ratio

0.07

Dividend Yield

ROCE (Latest)

3.06%

ROE (Latest)

49.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

22What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 18,211.98 MM

NET PROFIT(Q)

At CNY 1,725.21 MM has Grown at 240.68%

ROCE(HY)

Highest at 72.59%

PRE-TAX PROFIT(Q)

At CNY 1,662.34 MM has Grown at 129.42%

RAW MATERIAL COST(Y)

Fallen by -20.78% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 1,456.52 %

-6What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 23.49 times

INTEREST COVERAGE RATIO(Q)

Lowest at 128.86

OPERATING PROFIT(Q)

Lowest at CNY 1,240.71 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.72 %

Here's what is working for Hainan Airlines Holding Co., Ltd.

Net Profit

At CNY 1,725.21 MM has Grown at 240.68%

over average net sales of the previous four periods of CNY 506.4 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 18,211.98 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 1,662.34 MM has Grown at 129.42%

over average net sales of the previous four periods of CNY 724.59 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Lowest at 1,456.52 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -20.78% (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 Hainan Airlines Holding Co., Ltd.

Interest Coverage Ratio

Lowest at 128.86

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 23.49 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

Operating Profit

Lowest at CNY 1,240.71 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.72 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales