Hunan Huamin Holdings Co., Ltd. (300345) 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

Hunan Huamin Holdings Co., Ltd.

Why is Hunan Huamin Holdings Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.16%

The company has been able to generate a Return on Capital Employed (avg) of 0.16% signifying low profitability per unit of total capital (equity and debt)

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 47.43% and Operating profit at -279.39% 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 0.58% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 47.43% and Operating profit at -279.39% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

INTEREST(HY) At CNY 44.01 MM has Grown at 53.2%
NET SALES(HY) At CNY 473.22 MM has Grown at -10.49%
DEBT-EQUITY RATIO (HY) Highest at 95.75 %

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 65.33%, its profits have risen by 3.5%

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 Industrial Manufacturing)

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

Is Hunan Huamin Holdings Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hunan Huamin Holdings Co., Ltd.

52.81%

0.60

63.10%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

47.43%

EBIT Growth (5y)

-279.39%

EBIT to Interest (avg)

-10.38

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.92

Sales to Capital Employed (avg)

0.77

Tax Ratio

16.35%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.16%

ROE (avg)

0.58%

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

7.30

EV to EBIT

-16.74

EV to EBITDA

-40.63

EV to Capital Employed

4.27

EV to Sales

4.30

PEG Ratio

Dividend Yield

ROCE (Latest)

-25.53%

ROE (Latest)

-51.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY -81.23 MM

RAW MATERIAL COST(Y)

Fallen by -246.74% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY -33.13 MM

NET PROFIT(Q)

Highest at CNY -21.83 MM

EPS(Q)

Highest at CNY -0.04

-12What is not working for the Company

INTEREST(HY)

At CNY 44.01 MM has Grown at 53.2%

NET SALES(HY)

At CNY 473.22 MM has Grown at -10.49%

DEBT-EQUITY RATIO (HY)

Highest at 95.75 %

Here's what is working for Hunan Huamin Holdings Co., Ltd.

Operating Cash Flow

Highest at CNY -81.23 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)

Pre-Tax Profit

Highest at CNY -33.13 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY -33.13 MM has Grown at 58.41%

over average net sales of the previous four periods of CNY -79.66 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY -21.83 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY -21.83 MM has Grown at 63.9%

over average net sales of the previous four periods of CNY -60.47 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY -0.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -246.74% (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 Hunan Huamin Holdings Co., Ltd.

Interest

At CNY 44.01 MM has Grown at 53.2%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 473.22 MM has Grown at -10.49%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 95.75 % and Grown

In each half year 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