Shandong Bohui Paper Industry Co., Ltd. (600966) 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

Shandong Bohui Paper Industry Co., Ltd.

Why is Shandong Bohui Paper Industry 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 9.13% and Operating profit at -26.64% 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 9.90% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.13% and Operating profit at -26.64% over the last 5 years

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

INTEREST(HY) At CNY 198.23 MM has Grown at 5.08%
INTEREST COVERAGE RATIO(Q) Lowest at 160.59
DEBTORS TURNOVER RATIO(HY) Lowest at 8.09 times

With ROE of 2.03%, it has a fair valuation with a 0.96 Price to Book Value

Over the past year, while the stock has generated a return of 73.32%, its profits have fallen by -78.8%
At the current price, the company has a high dividend yield of 0.6

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shandong Bohui Paper Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

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

Is Shandong Bohui Paper Industry Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Shandong Bohui Paper Industry Co., Ltd.

39.16%

1.65

33.74%

China Shanghai Composite

13.33%

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)

9.13%

EBIT Growth (5y)

-26.64%

EBIT to Interest (avg)

2.56

Debt to EBITDA (avg)

6.83

Net Debt to Equity (avg)

1.32

Sales to Capital Employed (avg)

1.03

Tax Ratio

7.09%

Dividend Payout Ratio

20.00%

Pledged Shares

Institutional Holding

ROCE (avg)

7.91%

ROE (avg)

9.90%

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

0.96

EV to EBIT

51.72

EV to EBITDA

12.58

EV to Capital Employed

0.98

EV to Sales

0.73

PEG Ratio

Dividend Yield

0.58%

ROCE (Latest)

1.89%

ROE (Latest)

2.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,831.97 MM

CASH AND EQV(HY)

Highest at CNY 9,148.45 MM

DEBT-EQUITY RATIO (HY)

Lowest at 107.05 %

INVENTORY TURNOVER RATIO(HY)

Highest at 7.6 times

PRE-TAX PROFIT(Q)

At CNY 48.35 MM has Grown at 77.24%

-7What is not working for the Company

INTEREST(HY)

At CNY 198.23 MM has Grown at 5.08%

INTEREST COVERAGE RATIO(Q)

Lowest at 160.59

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.09 times

OPERATING PROFIT(Q)

Lowest at CNY 128.04 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.62 %

Here's what is working for Shandong Bohui Paper Industry Co., Ltd.

Operating Cash Flow

Highest at CNY 2,831.97 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 48.35 MM has Grown at 77.24%

over average net sales of the previous four periods of CNY 27.28 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 9,148.45 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 107.05 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 7.6 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Shandong Bohui Paper Industry Co., Ltd.

Interest Coverage Ratio

Lowest at 160.59

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 198.23 MM has Grown at 5.08%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 128.04 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.62 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 8.09 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio