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

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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 16.82% and Operating profit at -236.68% over the last 5 years

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

NET PROFIT(HY) At CNY -225.98 MM has Grown at -372.29%
ROCE(HY) Lowest at -3.52%
CASH AND EQV(HY) Lowest at CNY 13,331.65 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 99.53%, its profits have fallen by -1972.4%
At the current price, the company has a high dividend yield of 0

Market Beating Performance

The stock has generated a return of 99.53% in the last 1 year, much higher than market (China Shanghai Composite) returns of 14.77%

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.

99.53%

1.31

69.04%

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)

16.82%

EBIT Growth (5y)

-236.68%

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)

2.17

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

1.66

EV to EBIT

-30.72

EV to EBITDA

112.70

EV to Capital Employed

1.69

EV to Sales

0.52

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.49%

ROE (Latest)

-3.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

No Trend

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 1,449.42 MM

RAW MATERIAL COST(Y)

Fallen by -230% (YoY

PRE-TAX PROFIT(Q)

At CNY -20.58 MM has Grown at 84.43%

NET PROFIT(Q)

At CNY -33.9 MM has Grown at 78.97%

-14What is not working for the Company

NET PROFIT(HY)

At CNY -225.98 MM has Grown at -372.29%

ROCE(HY)

Lowest at -3.52%

CASH AND EQV(HY)

Lowest at CNY 13,331.65 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 17.87%

NET SALES(Q)

Lowest at CNY 14,403.38 MM

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

Operating Cash Flow

Highest at CNY 1,449.42 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 -20.58 MM has Grown at 84.43%

over average net sales of the previous four periods of CNY -132.13 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -33.9 MM has Grown at 78.97%

over average net sales of the previous four periods of CNY -161.24 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -230% (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.

Net Sales

Lowest at CNY 14,403.38 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 14,403.38 MM has Fallen at -9.3%

over average net sales of the previous four periods of CNY 15,880.82 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 13,331.65 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 17.87%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio