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 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 Hotels & Resorts)

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

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

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Huangshan Tourism Development Co., Ltd.

-5.06%

0.24

24.44%

China Shanghai Composite

21.43%

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)

21.02%

EBIT Growth (5y)

57.47%

EBIT to Interest (avg)

9.70

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.34

Sales to Capital Employed (avg)

0.42

Tax Ratio

31.86%

Dividend Payout Ratio

35.16%

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

1.14

EV to EBIT

8.33

EV to EBITDA

5.76

EV to Capital Employed

1.21

EV to Sales

1.86

PEG Ratio

Dividend Yield

2.26%

ROCE (Latest)

14.52%

ROE (Latest)

6.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly 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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 681.82 MM

RAW MATERIAL COST(Y)

Fallen by -4.22% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 25.75 times

-13What is not working for the Company

NET SALES(Q)

At CNY 417.25 MM has Fallen at -20.88%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,907.95

PRE-TAX PROFIT(Q)

At CNY 67.91 MM has Fallen at -44.48%

NET PROFIT(Q)

At CNY 34.63 MM has Fallen at -50.74%

DEBT-EQUITY RATIO (HY)

Highest at -26.92 %

OPERATING PROFIT(Q)

Lowest at CNY 66.27 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 15.88 %

EPS(Q)

Lowest at CNY 0.05

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

Operating Cash Flow

Highest at CNY 681.82 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)

Inventory Turnover Ratio

Highest at 25.75 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -4.22% (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 Huangshan Tourism Development Co., Ltd.

Net Sales

At CNY 417.25 MM has Fallen at -20.88%

over average net sales of the previous four periods of CNY 527.33 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 1,907.95

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 67.91 MM has Fallen at -44.48%

over average net sales of the previous four periods of CNY 122.31 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 34.63 MM has Fallen at -50.74%

over average net sales of the previous four periods of CNY 70.3 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 66.27 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 15.88 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at CNY 0.05

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at -26.92 %

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