Jihua Group Corp. Ltd. (601718) 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

Jihua Group Corp. Ltd.

Why is Jihua Group Corp. Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of -15.30% and Operating profit at -241.48% over the last 5 years

With a fall in PBT of -90.3%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 5 consecutive quarters
NET PROFIT(HY) At CNY -193.2 MM has Grown at -985.96%
INTEREST(HY) At CNY 37.39 MM has Grown at 24.52%
ROCE(HY) Lowest at -29.87%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 27.38%, its profits have fallen by -6402.4%
At the current price, the company has a high dividend yield of 0

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 Footwear)

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

Is Jihua Group Corp. Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Jihua Group Corp. Ltd.

-47.7%

0.60

46.51%

China Shanghai Composite

20.18%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-15.85%

EBIT Growth (5y)

4.07%

EBIT to Interest (avg)

-14.89

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.55

Tax Ratio

0.90%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.30%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.70

EV to EBIT

-9.98

EV to EBITDA

-18.69

EV to Capital Employed

0.61

EV to Sales

0.85

PEG Ratio

Dividend Yield

ROCE (Latest)

-6.14%

ROE (Latest)

-3.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

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

11What is working for the Company

NET PROFIT(HY)

Higher at CNY -230 MM

DEBT-EQUITY RATIO (HY)

Lowest at -23.62 %

DEBTORS TURNOVER RATIO(HY)

Highest at 2.13 times

-26What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 474.24 MM

NET SALES(Q)

At CNY 1,347.74 MM has Fallen at -21.58%

PRE-TAX PROFIT(Q)

At CNY -104.39 MM has Fallen at -66.3%

OPERATING PROFIT(Q)

Lowest at CNY -127.69 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -9.47 %

RAW MATERIAL COST(Y)

Grown by 7.95% (YoY

CASH AND EQV(HY)

Lowest at CNY 9,051.1 MM

NET PROFIT(Q)

Lowest at CNY -121.53 MM

EPS(Q)

Lowest at CNY -0.03

Here's what is working for Jihua Group Corp. Ltd.

Debt-Equity Ratio

Lowest at -23.62 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 2.13 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Jihua Group Corp. Ltd.

Net Sales

At CNY 1,347.74 MM has Fallen at -21.58%

over average net sales of the previous four periods of CNY 1,718.65 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -104.39 MM has Fallen at -66.3%

over average net sales of the previous four periods of CNY -62.77 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -121.53 MM has Fallen at -65.18%

over average net sales of the previous four periods of CNY -73.57 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 474.24 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)

Operating Profit

Lowest at CNY -127.69 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -9.47 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY -121.53 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.03

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 9,051.1 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 7.95% (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