Henan Ancai Hi-tech Co., Ltd. (600207) 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

Henan Ancai Hi-tech Co., Ltd.

Why is Henan Ancai Hi-tech Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.82%

The company has been able to generate a Return on Capital Employed (avg) of 4.82% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 10.94% and Operating profit at -310.77% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 4.33% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 10.94% and Operating profit at -310.77% over the last 5 years

With a fall in Operating Profit of -56.74%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 10 consecutive quarters
NET SALES(HY) At CNY 1,872.3 MM has Grown at -23.33%
NET PROFIT(HY) At CNY -363.02 MM has Grown at -528.03%
INTEREST(HY) At CNY 41.42 MM has Grown at 7.96%

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 -2.90%, its profits have fallen by -13829%

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 Other Electrical Equipment)

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

Is Henan Ancai Hi-tech Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Henan Ancai Hi-tech Co., Ltd.

-1.18%

0.60

46.10%

China Shanghai Composite

15.19%

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)

10.94%

EBIT Growth (5y)

-310.77%

EBIT to Interest (avg)

3.85

Debt to EBITDA (avg)

3.63

Net Debt to Equity (avg)

0.91

Sales to Capital Employed (avg)

0.84

Tax Ratio

6.17%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.82%

ROE (avg)

4.33%

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

1.89

EV to EBIT

-9.97

EV to EBITDA

-16.56

EV to Capital Employed

1.46

EV to Sales

2.03

PEG Ratio

Dividend Yield

ROCE (Latest)

-14.61%

ROE (Latest)

-25.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY -203.34 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 13.31%

-27What is not working for the Company

NET SALES(HY)

At CNY 1,872.3 MM has Grown at -23.33%

NET PROFIT(HY)

At CNY -363.02 MM has Grown at -528.03%

INTEREST(HY)

At CNY 41.42 MM has Grown at 7.96%

ROCE(HY)

Lowest at -16.04%

DEBT-EQUITY RATIO (HY)

Highest at 93.8 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.67%

RAW MATERIAL COST(Y)

Grown by 198.88% (YoY

Here's what is working for Henan Ancai Hi-tech Co., Ltd.

Operating Cash Flow

Highest at CNY -203.34 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)

Inventory Turnover Ratio

Highest at 13.31%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Henan Ancai Hi-tech Co., Ltd.

Net Sales

At CNY 1,872.3 MM has Grown at -23.33%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Net Profit

At CNY -363.02 MM has Grown at -528.03%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 41.42 MM has Grown at 7.96%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 93.8 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 2.67% and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 198.88% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales