Hangzhou Iron & Steel Co., Ltd. (600126) 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

Hangzhou Iron & Steel Co., Ltd.

Why is Hangzhou Iron & Steel Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.34%

The company has been able to generate a Return on Capital Employed (avg) of 4.34% 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 15.30% and Operating profit at -191.76% over the last 5 years

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

INTEREST(HY) At CNY 29.62 MM has Grown at 52.99%

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 -22.88%, its profits have fallen by -1972.4%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -22.88% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hangzhou Iron & Steel 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 Hangzhou Iron & Steel Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hangzhou Iron & Steel Co., Ltd.

-22.74%

2.06

51.27%

China Shanghai Composite

15.17%

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)

15.30%

EBIT Growth (5y)

-191.76%

EBIT to Interest (avg)

6.52

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

2.24

Tax Ratio

17.95%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.34%

ROE (avg)

3.21%

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

1.73

EV to EBIT

-31.98

EV to EBITDA

117.32

EV to Capital Employed

1.75

EV to Sales

0.55

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.49%

ROE (Latest)

-3.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

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

23What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 3,012.53 MM

RAW MATERIAL COST(Y)

Fallen by -139.47% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 29.02 times

NET SALES(Q)

Highest at CNY 15,848.19 MM

PRE-TAX PROFIT(Q)

Highest at CNY 207.01 MM

NET PROFIT(Q)

Highest at CNY 213.72 MM

EPS(Q)

Highest at CNY 0.06

-7What is not working for the Company

INTEREST(HY)

At CNY 29.62 MM has Grown at 52.99%

Here's what is working for Hangzhou Iron & Steel Co., Ltd.

Pre-Tax Profit

At CNY 207.01 MM has Grown at 227.47%

over average net sales of the previous four periods of CNY -162.39 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Highest at CNY 3,012.53 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)

Net Profit

At CNY 213.72 MM has Grown at 218.92%

over average net sales of the previous four periods of CNY -179.72 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 15,848.19 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 207.01 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 213.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.06

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 29.02 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -139.47% (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 Hangzhou Iron & Steel Co., Ltd.

Interest

At CNY 29.62 MM has Grown at 52.99%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Non Operating Income

Highest at CNY 0.58 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income