Huangshan Tourism Development Co., Ltd. (600054) 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

Huangshan Tourism Development Co., Ltd.

Why is Huangshan Tourism Development Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 7.40%

The company has been able to generate a Return on Capital Employed (avg) of 7.40% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 20.11% and Operating profit at 56.92% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

ROCE(HY) Lowest at 6.03%

With ROE of 7.32%, it has a fair valuation with a 1.54 Price to Book Value

Over the past year, while the stock has generated a return of 8.84%, its profits have fallen by -10%
At the current price, the company has a high dividend yield of 1.2

Underperformed the market in the last 1 year

The stock has generated a return of 8.84% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Huangshan Tourism Development Co., Ltd. should be less than 10%
Overall Portfolio exposure to Hotels & Resorts should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hotels & Resorts)

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

Is Huangshan Tourism Development Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Huangshan Tourism Development Co., Ltd.

8.41%

0.24

24.44%

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)

20.11%

EBIT Growth (5y)

56.92%

EBIT to Interest (avg)

9.70

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.34

Sales to Capital Employed (avg)

0.40

Tax Ratio

31.86%

Dividend Payout Ratio

39.82%

Pledged Shares

Institutional Holding

ROCE (avg)

7.40%

ROE (avg)

3.42%

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

1.54

EV to EBIT

10.67

EV to EBITDA

7.03

EV to Capital Employed

1.81

EV to Sales

2.77

PEG Ratio

Dividend Yield

1.23%

ROCE (Latest)

17.01%

ROE (Latest)

7.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 640.41 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 40.23%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.03 times

DIVIDEND PER SHARE(HY)

Highest at CNY 27.22

NET SALES(Q)

Highest at CNY 595.39 MM

PRE-TAX PROFIT(Q)

At CNY 208.9 MM has Grown at 57.31%

NET PROFIT(Q)

At CNY 126.93 MM has Grown at 58.63%

-2What is not working for the Company

ROCE(HY)

Lowest at 6.03%

Here's what is working for Huangshan Tourism Development Co., Ltd.

Operating Cash Flow

Highest at CNY 640.41 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 595.39 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 595.39 MM has Grown at 16.91%

over average net sales of the previous four periods of CNY 509.27 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 208.9 MM has Grown at 57.31%

over average net sales of the previous four periods of CNY 132.8 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 126.93 MM has Grown at 58.63%

over average net sales of the previous four periods of CNY 80.01 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 4.03 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at CNY 27.22

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 40.23%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)