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)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 4.26% and Operating profit at -171.00% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 3.21% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.26% and Operating profit at -171.00% over the last 5 years

Flat results in Jun 26

NET PROFIT(Q) At CNY 1.44 MM has Fallen at -91.02%
INVENTORY TURNOVER RATIO(HY) Lowest at 7.64 times
DEBTORS TURNOVER RATIO(HY) Lowest at 15.06 times

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 Ferrous Metals)

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

Is Hangzhou Iron & Steel Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hangzhou Iron & Steel Co., Ltd.

-41.9%

0.76

54.03%

China Shanghai Composite

0.9%

0.22

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.26%

EBIT Growth (5y)

-171.00%

EBIT to Interest (avg)

0.38

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

2.29

Tax Ratio

50.08%

Dividend Payout Ratio

69.44%

Pledged Shares

Institutional Holding

ROCE (avg)

2.58%

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

320

Industry P/E

Price to Book Value

1.04

EV to EBIT

-77.94

EV to EBITDA

25.21

EV to Capital Employed

1.05

EV to Sales

0.40

PEG Ratio

2.94

Dividend Yield

ROCE (Latest)

-1.35%

ROE (Latest)

0.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

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

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 3,205.69 MM

NET PROFIT(HY)

At CNY 10.04 MM has Grown at 108.94%

ROCE(HY)

Highest at 0.78%

DEBT-EQUITY RATIO (HY)

Lowest at -17.21 %

RAW MATERIAL COST(Y)

Fallen by -4,728.57% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 6.08 %

PRE-TAX PROFIT(Q)

At CNY 35.85 MM has Grown at 60.31%

-18What is not working for the Company

NET PROFIT(Q)

At CNY 1.44 MM has Fallen at -91.02%

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.64 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 15.06 times

NET SALES(Q)

Lowest at CNY 4,922.1 MM

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

Operating Cash Flow

Highest at CNY 3,205.69 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)

Debt-Equity Ratio

Lowest at -17.21 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Operating Profit Margin

Highest at 6.08 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At CNY 35.85 MM has Grown at 60.31%

over average net sales of the previous four periods of CNY 22.36 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -4,728.57% (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

At CNY 4,922.1 MM has Fallen at -56.81%

over average net sales of the previous four periods of CNY 11,395.74 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Profit

At CNY 1.44 MM has Fallen at -91.02%

over average net sales of the previous four periods of CNY 16.08 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 7.64 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

Net Sales

Lowest at CNY 4,922.1 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 15.06 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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