Hoshine Silicon Industry Co., Ltd. (603260) 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

Hoshine Silicon Industry Co., Ltd.

Why is Hoshine Silicon Industry 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 20.14% and Operating profit at -12.64% 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 17.06% signifying low profitability per unit of shareholders funds

With a fall in Net Sales of -6.36%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 11 consecutive quarters
The company has declared negative results in Sep 22 after 7 consecutive negative quarters
NET SALES(HY) At CNY 9,978.01 MM has Grown at -33.28%
PRE-TAX PROFIT(Q) At CNY 12.13 MM has Fallen at -90.07%
ROCE(HY) Lowest at -0.11%

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 -10.36%, its profits have fallen by -78.2%
At the current price, the company has a high dividend yield of 0.8

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -10.36% 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 Specialty Chemicals)

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

Is Hoshine Silicon Industry Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hoshine Silicon Industry Co., Ltd.

-26.36%

-0.01

39.11%

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)

20.14%

EBIT Growth (5y)

-12.64%

EBIT to Interest (avg)

18.56

Debt to EBITDA (avg)

3.18

Net Debt to Equity (avg)

0.85

Sales to Capital Employed (avg)

0.39

Tax Ratio

20.77%

Dividend Payout Ratio

30.38%

Pledged Shares

Institutional Holding

ROCE (avg)

15.75%

ROE (avg)

17.06%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

153

Industry P/E

Price to Book Value

1.77

EV to EBIT

87.06

EV to EBITDA

18.55

EV to Capital Employed

1.42

EV to Sales

3.68

PEG Ratio

Dividend Yield

0.84%

ROCE (Latest)

1.63%

ROE (Latest)

1.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 6,454.88 MM

-26What is not working for the Company

NET SALES(HY)

At CNY 9,978.01 MM has Grown at -33.28%

PRE-TAX PROFIT(Q)

At CNY 12.13 MM has Fallen at -90.07%

ROCE(HY)

Lowest at -0.11%

RAW MATERIAL COST(Y)

Grown by 57.29% (YoY

INTEREST(Q)

Highest at CNY 266.76 MM

NET PROFIT(Q)

At CNY 73.27 MM has Fallen at -27.89%

Here's what is working for Hoshine Silicon Industry Co., Ltd.

Operating Cash Flow

Highest at CNY 6,454.88 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)

Here's what is not working for Hoshine Silicon Industry Co., Ltd.

Net Sales

At CNY 9,978.01 MM has Grown at -33.28%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 12.13 MM has Fallen at -90.07%

over average net sales of the previous four periods of CNY 122.13 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Interest

Highest at CNY 266.76 MM

in the last five periods and Increased by 9.69% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 73.27 MM has Fallen at -27.89%

over average net sales of the previous four periods of CNY 101.61 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 57.29% (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