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

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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 4.63% and Operating profit at -19.07% 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 4.63% and Operating profit at -19.07% over the last 5 years

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

INTEREST(HY) At CNY 217.59 MM has Grown at 47.57%
OPERATING CASH FLOW(Y) Lowest at CNY 6,127.03 MM
ROCE(HY) Lowest at 4.08%

With ROE of 6.47%, it has a fair valuation with a 0.65 Price to Book Value

Over the past year, while the stock has generated a return of 24.12%, its profits have fallen by -28.5%
At the current price, the company has a high dividend yield of 1.9

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, Medium Return

Absolute

Risk Adjusted

Volatility

Hunan Valin Steel Co., Ltd.

22.39%

0.50

36.58%

China Shanghai Composite

15.19%

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)

4.63%

EBIT Growth (5y)

-19.07%

EBIT to Interest (avg)

14.41

Debt to EBITDA (avg)

4.52

Net Debt to Equity (avg)

0.94

Sales to Capital Employed (avg)

1.49

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

0.65

EV to EBIT

22.15

EV to EBITDA

9.03

EV to Capital Employed

0.76

EV to Sales

0.47

PEG Ratio

Dividend Yield

1.94%

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

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -79.73% (YoY

CASH AND EQV(HY)

Highest at CNY 41,431.64 MM

-22What is not working for the Company

INTEREST(HY)

At CNY 217.59 MM has Grown at 47.57%

OPERATING CASH FLOW(Y)

Lowest at CNY 6,127.03 MM

ROCE(HY)

Lowest at 4.08%

NET SALES(Q)

Lowest at CNY 30,086.54 MM

OPERATING PROFIT(Q)

Lowest at CNY 888.3 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.95 %

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

Cash and Eqv

Highest at CNY 41,431.64 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -79.73% (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 Valin Steel Co., Ltd.

Interest

At CNY 217.59 MM has Grown at 47.57%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 30,086.54 MM has Fallen at -16.41%

over average net sales of the previous four periods of CNY 35,993.95 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 6,127.03 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 30,086.54 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 888.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.95 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales