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. ?

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 3.41% and Operating profit at -16.94% 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 14.85% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.41% and Operating profit at -16.94% over the last 5 years

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

OPERATING CASH FLOW(Y) Lowest at CNY 3,891.65 MM
NET SALES(HY) At CNY 64,818.17 MM has Grown at -13.13%
INTEREST(Q) At CNY 71.18 MM has Grown at 267.88%

With ROE of 6.47%, it has a fair valuation with a 0.82 Price to Book Value

Over the past year, while the stock has generated a return of -0.75%, its profits have fallen by -28.5%
At the current price, the company has a high dividend yield of 1.5

Below par performance in long term as well as near term

Along with generating -0.75% returns in the last 1 year, the stock has also underperformed 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 Valin Steel Co., Ltd. should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

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

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

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

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hunan Valin Steel Co., Ltd.

-3.22%

0.09

37.37%

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)

3.41%

EBIT Growth (5y)

-16.94%

EBIT to Interest (avg)

14.41

Debt to EBITDA (avg)

4.52

Net Debt to Equity (avg)

0.94

Sales to Capital Employed (avg)

1.43

Tax Ratio

26.61%

Dividend Payout Ratio

34.00%

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

0.82

EV to EBIT

25.57

EV to EBITDA

10.43

EV to Capital Employed

0.88

EV to Sales

0.54

PEG Ratio

Dividend Yield

1.53%

ROCE (Latest)

3.44%

ROE (Latest)

6.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -56.78% (YoY

NET PROFIT(9M)

Higher at CNY 2,507.42 MM

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 3,891.65 MM

NET SALES(HY)

At CNY 64,818.17 MM has Grown at -13.13%

INTEREST(Q)

At CNY 71.18 MM has Grown at 267.88%

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.54 times

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

Net Profit

At CNY 2,507.42 MM has Grown at 41.64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

Higher at CNY 2,507.42 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost

Fallen by -56.78% (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 Valin Steel Co., Ltd.

Operating Cash Flow

Lowest at CNY 3,891.65 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

At CNY 71.18 MM has Grown at 267.88%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 64,818.17 MM has Grown at -13.13%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 8.54 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio