Huaibei Mining Holdings Co., Ltd. (600985) 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

Huaibei Mining Holdings Co., Ltd.

Why is Huaibei Mining Holdings Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -4.84% and Operating profit at -6.06% over the last 5 years

With a fall in Net Sales of -5.06%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CNY 8,014.58 MM
NET SALES(Q) At CNY 10,442.42 MM has Fallen at -35.75%
ROCE(HY) Lowest at 9.31%

With ROE of 6.22%, it has a very expensive valuation with a 0.82 Price to Book Value

Over the past year, while the stock has generated a return of -18.91%, its profits have fallen by -50.9%
At the current price, the company has a high dividend yield of 5.5

Below par performance in long term as well as near term

Along with generating -18.91% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Miscellaneous)

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

Is Huaibei Mining Holdings Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Huaibei Mining Holdings Co., Ltd.

-18.91%

-1.21

28.39%

China Shanghai Composite

14.77%

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)

-4.84%

EBIT Growth (5y)

-6.06%

EBIT to Interest (avg)

10.40

Debt to EBITDA (avg)

1.08

Net Debt to Equity (avg)

0.15

Sales to Capital Employed (avg)

1.28

Tax Ratio

19.00%

Dividend Payout Ratio

40.76%

Pledged Shares

Institutional Holding

ROCE (avg)

14.85%

ROE (avg)

15.72%

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

0.82

EV to EBIT

13.26

EV to EBITDA

6.01

EV to Capital Employed

0.85

EV to Sales

0.87

PEG Ratio

Dividend Yield

5.47%

ROCE (Latest)

6.42%

ROE (Latest)

6.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.79% (YoY

-32What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 8,014.58 MM

NET SALES(Q)

At CNY 10,442.42 MM has Fallen at -35.75%

ROCE(HY)

Lowest at 9.31%

PRE-TAX PROFIT(Q)

At CNY 701.33 MM has Fallen at -47.21%

INVENTORY TURNOVER RATIO(HY)

Lowest at 16.84%

OPERATING PROFIT(Q)

Lowest at CNY 767.92 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.35 %

NET PROFIT(Q)

Lowest at CNY 699.46 MM

EPS(Q)

Lowest at CNY 0.26

Here's what is working for Huaibei Mining Holdings Co., Ltd.

Raw Material Cost

Fallen by 0.79% (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 Huaibei Mining Holdings Co., Ltd.

Net Sales

At CNY 10,442.42 MM has Fallen at -35.75%

over average net sales of the previous four periods of CNY 16,253.08 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 8,014.58 MM and Fallen

In each year 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 701.33 MM has Fallen at -47.21%

over average net sales of the previous four periods of CNY 1,328.57 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 699.46 MM has Fallen at -42.4%

over average net sales of the previous four periods of CNY 1,214.36 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 767.92 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.35 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 699.46 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.26

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 16.84%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio