Hunan Silver Co., Ltd. (002716) 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 Silver Co., Ltd.

Why is Hunan Silver Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.77%

The company has been able to generate a Return on Capital Employed (avg) of 1.77% 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 46.79% and Operating profit at 15.95% over the last 5 years

With a growth in Net Profit of 181.64%, the company declared Very Positive results in Sep 25

The company has declared positive results for the last 5 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 437.74 MM
ROCE(HY) Highest at 6.2%
INVENTORY TURNOVER RATIO(HY) Highest at 5.4 times

With ROE of 5.17%, it has a very expensive valuation with a 5.80 Price to Book Value

Over the past year, while the stock has generated a return of 221.75%, its profits have risen by 283.7% ; the PEG ratio of the company is 0.4

Consistent Returns over the last 3 years

Along with generating 221.75% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hunan Silver Co., Ltd. should be less than 10%
Overall Portfolio exposure to Minerals & Mining should be less than 30%

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

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

Is Hunan Silver Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hunan Silver Co., Ltd.

202.07%

3.22

69.47%

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)

46.79%

EBIT Growth (5y)

15.95%

EBIT to Interest (avg)

-0.62

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

1.87

Tax Ratio

18.67%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.77%

ROE (avg)

8.85%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

112

Industry P/E

Price to Book Value

5.80

EV to EBIT

66.56

EV to EBITDA

39.52

EV to Capital Employed

5.51

EV to Sales

2.09

PEG Ratio

0.40

Dividend Yield

ROCE (Latest)

8.29%

ROE (Latest)

5.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

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

27What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 437.74 MM

ROCE(HY)

Highest at 6.2%

INVENTORY TURNOVER RATIO(HY)

Highest at 5.4 times

CASH AND EQV(HY)

Highest at CNY 1,573.39 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 359.28 times

NET SALES(Q)

Highest at CNY 4,065.18 MM

PRE-TAX PROFIT(Q)

Highest at CNY 110.44 MM

NET PROFIT(Q)

Highest at CNY 96.36 MM

EPS(Q)

Highest at CNY 0.03

-12What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 478.36

RAW MATERIAL COST(Y)

Grown by 34.58% (YoY

INTEREST(Q)

Highest at CNY 28.64 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.37 %

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

Net Sales

At CNY 4,065.18 MM has Grown at 71.13%

over average net sales of the previous four periods of CNY 2,375.46 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 437.74 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)

Net Profit

At CNY 96.36 MM has Grown at 121.72%

over average net sales of the previous four periods of CNY 43.46 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 5.4 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at CNY 4,065.18 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 110.44 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 110.44 MM has Grown at 90.3%

over average net sales of the previous four periods of CNY 58.03 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 96.36 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 1,573.39 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 359.28 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Hunan Silver Co., Ltd.

Interest

At CNY 28.64 MM has Grown at 28.3%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 478.36

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 28.64 MM

in the last five periods and Increased by 28.3% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 3.37 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 34.58% (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