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

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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 30.03% and Operating profit at 15.69% over the last 5 years

The company has declared Positive results for the last 5 consecutive quarters

NET SALES(HY) At CNY 4,780.14 MM has Grown at 47.77%
OPERATING CASH FLOW(Y) Highest at CNY 472.33 MM
NET PROFIT(HY) Higher at CNY 74.3 MM

With ROE of 5.17%, it has a very expensive valuation with a 1.24 Price to Book Value

Over the past year, while the stock has generated a return of 64.45%, its profits have risen by 283.7% ; the PEG ratio of the company is 0.1

Market Beating performance in long term as well as near term

Along with generating 64.45% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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.

67.89%

1.41

50.79%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

30.03%

EBIT Growth (5y)

15.69%

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)

1.75

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

Industry P/E

Price to Book Value

1.24

EV to EBIT

14.82

EV to EBITDA

8.80

EV to Capital Employed

1.23

EV to Sales

0.47

PEG Ratio

0.08

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

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

28What is working for the Company

NET SALES(HY)

At CNY 4,780.14 MM has Grown at 47.77%

OPERATING CASH FLOW(Y)

Highest at CNY 472.33 MM

NET PROFIT(HY)

Higher at CNY 74.3 MM

ROCE(HY)

Highest at 5.99%

INVENTORY TURNOVER RATIO(HY)

Highest at 5.04%

RAW MATERIAL COST(Y)

Fallen by -584.95% (YoY

CASH AND EQV(HY)

Highest at CNY 1,021.28 MM

DEBT-EQUITY RATIO (HY)

Lowest at 11.38 %

-2What is not working for the Company

NET SALES(Q)

At CNY 1,875.28 MM has Fallen at -9.15%

NET PROFIT(Q)

At CNY 28.03 MM has Fallen at -33.96%

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

Inventory Turnover Ratio

Highest at 5.04% 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

Operating Cash Flow

Highest at CNY 472.33 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 1,021.28 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 11.38 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -584.95% (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 Silver Co., Ltd.

Net Sales

At CNY 1,875.28 MM has Fallen at -9.15%

over average net sales of the previous four periods of CNY 2,064.19 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Profit

At CNY 28.03 MM has Fallen at -33.96%

over average net sales of the previous four periods of CNY 42.44 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)