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

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 -0.01% and Operating profit at -5.96% over the last 5 years
The company is Net-Debt Free

Flat results in Mar 26

NET SALES(HY) At CNY 52,895.81 MM has Grown at -18.39%
INTEREST COVERAGE RATIO(Q) Lowest at 120.82
OPERATING PROFIT(Q) Lowest at CNY 1,537.36 MM

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.84% 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 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, Low Return

Absolute

Risk Adjusted

Volatility

HBIS Co., Ltd.

-5.14%

-0.05

30.04%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.01%

EBIT Growth (5y)

-5.96%

EBIT to Interest (avg)

1.29

Debt to EBITDA (avg)

8.50

Net Debt to Equity (avg)

2.62

Sales to Capital Employed (avg)

0.57

Tax Ratio

31.80%

Dividend Payout Ratio

41.28%

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

0.45

EV to EBIT

28.25

EV to EBITDA

13.46

EV to Capital Employed

0.85

EV to Sales

1.34

PEG Ratio

0.55

Dividend Yield

1.32%

ROCE (Latest)

2.99%

ROE (Latest)

2.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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

5What is working for the Company

ROCE(HY)

Highest at 2.11%

RAW MATERIAL COST(Y)

Fallen by -4.9% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 15.81 times

PRE-TAX PROFIT(Q)

At CNY 333.07 MM has Grown at 59.77%

-9What is not working for the Company

NET SALES(HY)

At CNY 52,895.81 MM has Grown at -18.39%

INTEREST COVERAGE RATIO(Q)

Lowest at 120.82

OPERATING PROFIT(Q)

Lowest at CNY 1,537.36 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.91 %

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

Pre-Tax Profit

At CNY 333.07 MM has Grown at 59.77%

over average net sales of the previous four periods of CNY 208.48 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Debtors Turnover Ratio

Highest at 15.81 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 -4.9% (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.

Net Sales

At CNY 52,895.81 MM has Grown at -18.39%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 120.82

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 1,537.36 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.91 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales