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 70.57% and Operating profit at 16.71% over the last 5 years

The company has declared Positive results for the last 9 consecutive quarters

NET SALES(HY) At CNY 7,048.75 MM has Grown at 46.32%
ROCE(HY) Highest at 12.68%
RAW MATERIAL COST(Y) Fallen by -74.73% (YoY)

With ROE of 11.52%, it has a expensive valuation with a 1.30 Price to Book Value

Over the past year, while the stock has generated a return of 108.27%, its profits have risen by 142.3% ; the PEG ratio of the company is 0.1

Consistent Returns over the last 3 years

Along with generating 108.27% 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.

108.27%

1.60

71.77%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

70.57%

EBIT Growth (5y)

16.71%

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)

2.05

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

1.30

EV to EBIT

9.64

EV to EBITDA

7.88

EV to Capital Employed

1.25

EV to Sales

0.45

PEG Ratio

0.08

Dividend Yield

ROCE (Latest)

13.00%

ROE (Latest)

11.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly 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

24What is working for the Company

NET SALES(HY)

At CNY 7,048.75 MM has Grown at 46.32%

ROCE(HY)

Highest at 12.68%

RAW MATERIAL COST(Y)

Fallen by -74.73% (YoY

CASH AND EQV(HY)

Highest at CNY 2,186.48 MM

PRE-TAX PROFIT(Q)

At CNY 180.7 MM has Grown at 82.03%

NET PROFIT(Q)

At CNY 155.53 MM has Grown at 82.85%

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -201.95 MM

INTEREST(Q)

At CNY 27.31 MM has Grown at 21.89%

DEBT-EQUITY RATIO (HY)

Highest at 20.73 %

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

Net Sales

At CNY 7,048.75 MM has Grown at 46.32%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 180.7 MM has Grown at 82.03%

over average net sales of the previous four periods of CNY 99.27 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 155.53 MM has Grown at 82.85%

over average net sales of the previous four periods of CNY 85.06 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 2,186.48 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -74.73% (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.

Interest

At CNY 27.31 MM has Grown at 21.89%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -201.95 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 20.73 %

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