Henan Yuguang Gold & Lead Co., Ltd. (600531) 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

Henan Yuguang Gold & Lead Co., Ltd.

Why is Henan Yuguang Gold & Lead Co., Ltd. ?

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 20.36% and Operating profit at 25.80% 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 12.47% signifying low profitability per unit of shareholders funds

Negative results in Sep 25

NET PROFIT(HY) At CNY 399.86 MM has Grown at -41.98%
OPERATING CASH FLOW(Y) Lowest at CNY -1,376.52 MM
INTEREST(Q) At CNY 86.74 MM has Grown at 40.76%

With ROE of 11.56%, it has a fair valuation with a 2.21 Price to Book Value

Over the past year, while the stock has generated a return of 168.78%, its profits have fallen by -37.4%
At the current price, the company has a high dividend yield of 1.9

Market Beating performance in long term as well as near term

Along with generating 168.78% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Henan Yuguang Gold & Lead Co., Ltd. should be less than 10%
Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gems, Jewellery And Watches)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Henan Yuguang Gold & Lead Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Henan Yuguang Gold & Lead Co., Ltd.

70.21%

2.28

59.50%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.36%

EBIT Growth (5y)

25.80%

EBIT to Interest (avg)

2.96

Debt to EBITDA (avg)

9.22

Net Debt to Equity (avg)

1.63

Sales to Capital Employed (avg)

2.49

Tax Ratio

18.42%

Dividend Payout Ratio

30.39%

Pledged Shares

Institutional Holding

ROCE (avg)

6.48%

ROE (avg)

12.47%

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

2.21

EV to EBIT

27.89

EV to EBITDA

20.16

EV to Capital Employed

1.48

EV to Sales

0.50

PEG Ratio

Dividend Yield

1.93%

ROCE (Latest)

5.29%

ROE (Latest)

11.56%

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

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Bullish

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

6What is working for the Company

NET SALES(Q)

Highest at CNY 12,414.36 MM

-19What is not working for the Company

NET PROFIT(HY)

At CNY 399.86 MM has Grown at -41.98%

OPERATING CASH FLOW(Y)

Lowest at CNY -1,376.52 MM

INTEREST(Q)

At CNY 86.74 MM has Grown at 40.76%

RAW MATERIAL COST(Y)

Grown by 46.58% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 183.41 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 30.45 times

PRE-TAX PROFIT(Q)

At CNY 153.03 MM has Fallen at -30.02%

EPS(Q)

Lowest at CNY 0.11

Here's what is working for Henan Yuguang Gold & Lead Co., Ltd.

Net Sales

Highest at CNY 12,414.36 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Here's what is not working for Henan Yuguang Gold & Lead Co., Ltd.

Net Profit

At CNY 399.86 MM has Grown at -41.98%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 86.74 MM has Grown at 40.76%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -1,376.52 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 153.03 MM has Fallen at -30.02%

over average net sales of the previous four periods of CNY 218.69 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

EPS

Lowest at CNY 0.11

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 183.41 %

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 30.45 times

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 46.58% (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