Hubei Sanxia New Building Materials Co., Ltd. (600293) 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

Hubei Sanxia New Building Materials Co., Ltd.

Why is Hubei Sanxia New Building Materials Co., Ltd. ?

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 -9.85% and Operating profit at 12.44% 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

Poor long term growth as Net Sales has grown by an annual rate of -9.85% and Operating profit at 12.44% over the last 5 years

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
OPERATING CASH FLOW(Y) Lowest at CNY -59.21 MM
NET SALES(Q) At CNY 271.81 MM has Fallen at -26.85%
NET PROFIT(Q) At CNY -32.86 MM has Fallen at -178.39%

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 15.61%, its profits have fallen by -152.3%

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 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.

4.18%

0.80

38.66%

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)

-9.85%

EBIT Growth (5y)

12.44%

EBIT to Interest (avg)

-1.84

Debt to EBITDA (avg)

1.81

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

0.72

Tax Ratio

53.32%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.27%

ROE (avg)

4.52%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.05

EV to EBIT

-50.43

EV to EBITDA

38.51

EV to Capital Employed

1.81

EV to Sales

2.72

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.59%

ROE (Latest)

-3.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

2What is working for the Company

NO KEY POSITIVE TRIGGERS

-36What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -59.21 MM

NET SALES(Q)

At CNY 271.81 MM has Fallen at -26.85%

NET PROFIT(Q)

At CNY -32.86 MM has Fallen at -178.39%

INTEREST(HY)

At CNY 11.85 MM has Grown at 7.88%

RAW MATERIAL COST(Y)

Grown by 224.59% (YoY

CASH AND EQV(HY)

Lowest at CNY 400.57 MM

DEBT-EQUITY RATIO (HY)

Highest at 30.87 %

OPERATING PROFIT(Q)

Lowest at CNY -41.59 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -15.3 %

PRE-TAX PROFIT(Q)

Lowest at CNY -33.07 MM

Here's what is not working for Hubei Sanxia New Building Materials Co., Ltd.

Net Sales

At CNY 271.81 MM has Fallen at -26.85%

over average net sales of the previous four periods of CNY 371.58 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -33.07 MM has Fallen at -172.84%

over average net sales of the previous four periods of CNY -12.12 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -32.86 MM has Fallen at -178.39%

over average net sales of the previous four periods of CNY -11.8 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -59.21 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)

Interest

At CNY 11.85 MM has Grown at 7.88%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -41.59 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -15.3 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -33.07 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Cash and Eqv

Lowest at CNY 400.57 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 30.87 %

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 224.59% (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