Hangxiao Steel Structure Co., Ltd. (600477) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hangxiao Steel Structure Co., Ltd.

Why is Hangxiao Steel Structure Co., Ltd. ?

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 3.03% and Operating profit at -33.91% 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 7.72% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.03% and Operating profit at -33.91% over the last 5 years

The company has declared negative results for the last 3 consecutive quarters

NET PROFIT(HY) At CNY 12.59 MM has Grown at -88.49%
INTEREST(HY) At CNY 109.94 MM has Grown at 27.86%
NET SALES(Q) At CNY 1,616.24 MM has Fallen at -17.95%

With ROE of 2.53%, it has a very attractive valuation with a 1.11 Price to Book Value

Over the past year, while the stock has generated a return of -5.84%, its profits have fallen by -52.2%
At the current price, the company has a high dividend yield of 2.9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -5.84% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hangxiao Steel Structure Co., Ltd. should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

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

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

Is Hangxiao Steel Structure Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hangxiao Steel Structure Co., Ltd.

-5.84%

0.21

31.33%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.03%

EBIT Growth (5y)

-33.91%

EBIT to Interest (avg)

3.81

Debt to EBITDA (avg)

7.28

Net Debt to Equity (avg)

0.98

Sales to Capital Employed (avg)

0.92

Tax Ratio

6.26%

Dividend Payout Ratio

97.77%

Pledged Shares

Institutional Holding

ROCE (avg)

4.73%

ROE (avg)

7.72%

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

1.11

EV to EBIT

198.55

EV to EBITDA

26.98

EV to Capital Employed

1.06

EV to Sales

1.41

PEG Ratio

Dividend Yield

2.91%

ROCE (Latest)

0.53%

ROE (Latest)

2.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-35What is not working for the Company

NET PROFIT(HY)

At CNY 12.59 MM has Grown at -88.49%

INTEREST(HY)

At CNY 109.94 MM has Grown at 27.86%

NET SALES(Q)

At CNY 1,616.24 MM has Fallen at -17.95%

ROCE(HY)

Lowest at 2.97%

DEBT-EQUITY RATIO (HY)

Highest at 98.11 %

RAW MATERIAL COST(Y)

Grown by 11.11% (YoY

CASH AND EQV(HY)

Lowest at CNY 999.77 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.98%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.9%

Here's what is not working for Hangxiao Steel Structure Co., Ltd.

Net Profit

At CNY 12.59 MM has Grown at -88.49%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 109.94 MM has Grown at 27.86%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 1,616.24 MM has Fallen at -17.95%

over average net sales of the previous four periods of CNY 1,969.86 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 98.11 % 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

Cash and Eqv

Lowest at CNY 999.77 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 8.98%

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 0.9%

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 11.11% (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