Hunan Valin Steel Co., Ltd. (000932) 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 Valin Steel Co., Ltd.

Why is Hunan Valin Steel Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -1.67% and Operating profit at -21.70% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 14.85% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -1.67% and Operating profit at -21.70% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 5,597.45 MM
NET PROFIT(Q) At CNY 198.12 MM has Fallen at -69.65%
NET SALES(HY) At CNY 56,104.79 MM has Grown at -11.29%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -16.63% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Ferrous Metals)

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

Is Hunan Valin Steel Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hunan Valin Steel Co., Ltd.

-16.48%

-0.77

36.41%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.67%

EBIT Growth (5y)

-21.70%

EBIT to Interest (avg)

14.41

Debt to EBITDA (avg)

4.52

Net Debt to Equity (avg)

0.94

Sales to Capital Employed (avg)

1.30

Tax Ratio

26.61%

Dividend Payout Ratio

42.18%

Pledged Shares

Institutional Holding

ROCE (avg)

9.15%

ROE (avg)

14.85%

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

0.39

EV to EBIT

24.25

EV to EBITDA

11.53

EV to Capital Employed

0.66

EV to Sales

0.56

PEG Ratio

2.05

Dividend Yield

3.20%

ROCE (Latest)

2.73%

ROE (Latest)

6.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

1What is working for the Company

CASH AND EQV(HY)

Highest at CNY 46,125.13 MM

-25What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 5,597.45 MM

NET PROFIT(Q)

At CNY 198.12 MM has Fallen at -69.65%

NET SALES(HY)

At CNY 56,104.79 MM has Grown at -11.29%

ROCE(HY)

Lowest at 4.08%

INTEREST COVERAGE RATIO(Q)

Lowest at 208.53

RAW MATERIAL COST(Y)

Grown by 35.88% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 79.36 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.27 %

PRE-TAX PROFIT(Q)

Lowest at CNY 457.55 MM

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

Cash and Eqv

Highest at CNY 46,125.13 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

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

Pre-Tax Profit

At CNY 457.55 MM has Fallen at -60.42%

over average net sales of the previous four periods of CNY 1,155.88 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 198.12 MM has Fallen at -69.65%

over average net sales of the previous four periods of CNY 652.71 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 5,597.45 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 Coverage Ratio

Lowest at 208.53

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At CNY 56,104.79 MM has Grown at -11.29%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 79.36 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.27 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 457.55 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Raw Material Cost

Grown by 35.88% (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

Non Operating Income

Highest at CNY 0.91 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income