Huali Industrial Group Co. Ltd. () 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

Huali Industrial Group Co. Ltd.

Why is Huali Industrial Group Co. Ltd. ?

With a fall in Net Sales of -19.4%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 5 consecutive quarters
INTEREST(HY) At CNY 46.31 MM has Grown at 129.2%
INTEREST COVERAGE RATIO(Q) Lowest at 1,917.52
OPERATING CASH FLOW(Y) Lowest at CNY 3,135.4 MM

Below par performance in long term as well as near term

Along with generating -41.38% 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 Footwear)

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

Is Huali Industrial Group Co. Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Huali Industrial Group Co. Ltd.

-41.27%

-1.90

28.81%

China Shanghai Composite

19.22%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.31%

EBIT Growth (5y)

-14.56%

EBIT to Interest (avg)

75.54

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

1.34

Tax Ratio

22.07%

Dividend Payout Ratio

76.42%

Pledged Shares

Institutional Holding

ROCE (avg)

43.76%

ROE (avg)

24.01%

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

2.41

EV to EBIT

9.64

EV to EBITDA

7.91

EV to Capital Employed

2.84

EV to Sales

1.49

PEG Ratio

Dividend Yield

0.78%

ROCE (Latest)

29.41%

ROE (Latest)

17.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-38What is not working for the Company

INTEREST(HY)

At CNY 46.31 MM has Grown at 129.2%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,917.52

OPERATING CASH FLOW(Y)

Lowest at CNY 3,135.4 MM

ROCE(HY)

Lowest at 16.4%

RAW MATERIAL COST(Y)

Grown by 20.31% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -22.44 %

NET SALES(Q)

Lowest at CNY 4,314.57 MM

OPERATING PROFIT(Q)

Lowest at CNY 446.35 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.35 %

PRE-TAX PROFIT(Q)

Lowest at CNY 412.85 MM

NET PROFIT(Q)

Lowest at CNY 355.33 MM

EPS(Q)

Lowest at CNY 0.33

Here's what is not working for Huali Industrial Group Co. Ltd.

Interest

At CNY 46.31 MM has Grown at 129.2%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,917.52 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 412.85 MM has Fallen at -56%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 355.33 MM has Fallen at -53.21%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 4,314.57 MM has Fallen at -19.4%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 3,135.4 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 4,314.57 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 446.35 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 10.35 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 412.85 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 355.33 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.33

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at -22.44 %

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

Raw Material Cost

Grown by 20.31% (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