Qinghai Huzhu TianYouDe Highland Barley Spirit Co., Ltd. (002646) 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

Qinghai Huzhu TianYouDe Highland Barley Spirit Co., Ltd.

Why is Qinghai Huzhu TianYouDe Highland Barley Spirit Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.63%

The company has been able to generate a Return on Capital Employed (avg) of 2.63% 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 2.36% and Operating profit at 16.03% over the last 5 years

The company has declared Negative results for the last 8 consecutive quarters

NET SALES(9M) At CNY 731.45 MM has Grown at -10.48%
ROCE(HY) Lowest at -0.51%
INVENTORY TURNOVER RATIO(HY) Lowest at 0.33 times

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 -27.00%, its profits have fallen by -1273.6%
At the current price, the company has a high dividend yield of 0.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -27.00% 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 Beverages)

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

Is Qinghai Huzhu TianYouDe Highland Barley Spirit Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Qinghai Huzhu TianYouDe Highland Barley Spirit Co., Ltd.

-26.12%

-1.57

25.81%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.36%

EBIT Growth (5y)

16.03%

EBIT to Interest (avg)

24.30

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

0.38

Tax Ratio

92.82%

Dividend Payout Ratio

55.56%

Pledged Shares

Institutional Holding

ROCE (avg)

2.63%

ROE (avg)

1.84%

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

1.16

EV to EBIT

1629.78

EV to EBITDA

45.55

EV to Capital Employed

1.18

EV to Sales

3.27

PEG Ratio

Dividend Yield

0.16%

ROCE (Latest)

0.07%

ROE (Latest)

-0.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

No Trend

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

3What is working for the Company

NET PROFIT(HY)

Higher at CNY 30.96 MM

RAW MATERIAL COST(Y)

Fallen by -5.88% (YoY

-16What is not working for the Company

NET SALES(9M)

At CNY 731.45 MM has Grown at -10.48%

ROCE(HY)

Lowest at -0.51%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.33 times

CASH AND EQV(HY)

Lowest at CNY 499.35 MM

PRE-TAX PROFIT(Q)

Fallen at -26.19%

NET PROFIT(Q)

Fallen at -28.18%

Here's what is working for Qinghai Huzhu TianYouDe Highland Barley Spirit Co., Ltd.

Raw Material Cost

Fallen by -5.88% (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 Qinghai Huzhu TianYouDe Highland Barley Spirit Co., Ltd.

Inventory Turnover Ratio

Lowest at 0.33 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

At CNY 731.45 MM has Grown at -10.48%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Pre-Tax Profit

Fallen at -26.19%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -28.18%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Cash and Eqv

Lowest at CNY 499.35 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents