Why is Hubei Sanxia New Building Materials Co., Ltd. ?
1
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 -8.18% and Operating profit at 12.96% 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 4.52% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of -8.18% and Operating profit at 12.96% over the last 5 years
3
With a fall in Net Sales of -0.07%, the company declared Very Negative results in Mar 25
- The company has declared negative results for the last 4 consecutive quarters
- The company has declared negative results in Jun 24 after 3 consecutive negative quarters
- NET PROFIT(HY) At CNY 8.88 MM has Grown at -80.49%
- OPERATING CASH FLOW(Y) Lowest at CNY -40.15 MM
- INTEREST COVERAGE RATIO(Q) Lowest at 91.89
4
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 -12.61%, its profits have fallen by -152.3%
5
Underperformed the market in the last 1 year
- Even though the market (China Shanghai Composite) has generated returns of 14.77% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -12.61% returns
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 Other Industrial Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hubei Sanxia New Building Materials Co., Ltd. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Hubei Sanxia New Building Materials Co., Ltd.
-100.0%
0.45
38.25%
China Shanghai Composite
15.19%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
-8.18%
EBIT Growth (5y)
12.96%
EBIT to Interest (avg)
-1.84
Debt to EBITDA (avg)
1.81
Net Debt to Equity (avg)
0.27
Sales to Capital Employed (avg)
0.73
Tax Ratio
53.32%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.27%
ROE (avg)
4.52%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
2.04
EV to EBIT
-50.21
EV to EBITDA
38.35
EV to Capital Employed
1.80
EV to Sales
2.71
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-3.59%
ROE (Latest)
-3.04%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
5What is working for the Company
NET PROFIT(Q)
At CNY 10.39 MM has Grown at 230.67%
PRE-TAX PROFIT(Q)
At CNY 7.11 MM has Grown at 108.96%
-29What is not working for the Company
NET PROFIT(HY)
At CNY 8.88 MM has Grown at -80.49%
OPERATING CASH FLOW(Y)
Lowest at CNY -40.15 MM
INTEREST COVERAGE RATIO(Q)
Lowest at 91.89
RAW MATERIAL COST(Y)
Grown by 95.77% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 4.96%
NET SALES(Q)
Lowest at CNY 212.66 MM
OPERATING PROFIT(Q)
Lowest at CNY 4.26 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 2 %
Here's what is working for Hubei Sanxia New Building Materials Co., Ltd.
Net Profit
At CNY 10.39 MM has Grown at 230.67%
over average net sales of the previous four periods of CNY 3.14 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Pre-Tax Profit
At CNY 7.11 MM has Grown at 108.96%
over average net sales of the previous four periods of CNY 3.4 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Here's what is not working for Hubei Sanxia New Building Materials Co., Ltd.
Net Sales
At CNY 212.66 MM has Fallen at -50.43%
over average net sales of the previous four periods of CNY 429.03 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Operating Cash Flow
Lowest at CNY -40.15 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Interest Coverage Ratio
Lowest at 91.89
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales
Lowest at CNY 212.66 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY 4.26 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 2 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Inventory Turnover Ratio
Lowest at 4.96%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 95.77% (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






