HBIS Co., Ltd. (000709) 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

HBIS Co., Ltd.

Why is HBIS Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 4.03%

Poor long term growth as Net Sales has grown by an annual rate of 3.29% and Operating profit at -4.57% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared Negative results for the last 13 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 9,269.37 MM
NET PROFIT(9M) At CNY 526.5 MM has Grown at -28.08%
INTEREST(HY) At CNY 2,876.2 MM has Grown at 6.21%

Underperformed the market in the last 1 year

The stock has generated a return of 4.96% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.18%

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 HBIS Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

HBIS Co., Ltd.

0.44%

0.83

26.74%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.29%

EBIT Growth (5y)

-4.57%

EBIT to Interest (avg)

1.29

Debt to EBITDA (avg)

8.50

Net Debt to Equity (avg)

2.62

Sales to Capital Employed (avg)

0.61

Tax Ratio

31.80%

Dividend Payout Ratio

43.86%

Pledged Shares

Institutional Holding

ROCE (avg)

4.03%

ROE (avg)

3.38%

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

0.50

EV to EBIT

27.65

EV to EBITDA

11.32

EV to Capital Employed

0.86

EV to Sales

1.24

PEG Ratio

Dividend Yield

1.22%

ROCE (Latest)

3.11%

ROE (Latest)

2.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

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

5What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 198.95 MM has Grown at 171.82%

RAW MATERIAL COST(Y)

Fallen by -4.31% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 12.07%

NET SALES(Q)

Highest at CNY 32,310.05 MM

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 9,269.37 MM

NET PROFIT(9M)

At CNY 526.5 MM has Grown at -28.08%

INTEREST(HY)

At CNY 2,876.2 MM has Grown at 6.21%

ROCE(HY)

Lowest at 1.52%

INTEREST COVERAGE RATIO(Q)

Lowest at 113.73

OPERATING PROFIT(Q)

Lowest at CNY 1,623.99 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.03 %

Here's what is working for HBIS Co., Ltd.

Pre-Tax Profit

At CNY 198.95 MM has Grown at 171.82%

over average net sales of the previous four periods of CNY 73.19 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

Highest at CNY 32,310.05 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 12.07%

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 -4.31% (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 HBIS Co., Ltd.

Interest Coverage Ratio

Lowest at 113.73

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 2,876.2 MM has Grown at 6.21%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 526.5 MM has Grown at -28.08%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 9,269.37 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 1,623.99 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.03 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales