Shandong Huatai Paper Co., Ltd. (600308) 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

Shandong Huatai Paper Co., Ltd.

Why is Shandong Huatai Paper Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 0.90% and Operating profit at -52.95% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(HY) At CNY -71.78 MM has Grown at -156.72%
OPERATING CASH FLOW(Y) Lowest at CNY 184.94 MM
INTEREST(HY) At CNY 52.2 MM has Grown at 14.33%

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 -1.28%, its profits have fallen by -139.4%
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 -1.28% 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 Paper, Forest & Jute Products)

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

Is Shandong Huatai Paper Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shandong Huatai Paper Co., Ltd.

-1.28%

0.40

32.43%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.90%

EBIT Growth (5y)

-52.95%

EBIT to Interest (avg)

3.84

Debt to EBITDA (avg)

1.49

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

1.03

Tax Ratio

100.00%

Dividend Payout Ratio

33.06%

Pledged Shares

Institutional Holding

ROCE (avg)

4.28%

ROE (avg)

4.29%

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

0.59

EV to EBIT

400.06

EV to EBITDA

11.01

EV to Capital Employed

0.68

EV to Sales

0.61

PEG Ratio

Dividend Yield

0.22%

ROCE (Latest)

0.17%

ROE (Latest)

-1.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

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

PRE-TAX PROFIT(Q)

At CNY 91.03 MM has Grown at 542.84%

NET PROFIT(Q)

At CNY 59.62 MM has Grown at 559.5%

RAW MATERIAL COST(Y)

Fallen by -29.6% (YoY

-22What is not working for the Company

NET PROFIT(HY)

At CNY -71.78 MM has Grown at -156.72%

OPERATING CASH FLOW(Y)

Lowest at CNY 184.94 MM

INTEREST(HY)

At CNY 52.2 MM has Grown at 14.33%

ROCE(HY)

Lowest at -0.18%

DEBT-EQUITY RATIO (HY)

Highest at 25.96 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.24%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.03%

NET SALES(Q)

Lowest at CNY 3,066.04 MM

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

Pre-Tax Profit

At CNY 91.03 MM has Grown at 542.84%

over average net sales of the previous four periods of CNY 14.16 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 59.62 MM has Grown at 559.5%

over average net sales of the previous four periods of CNY 9.04 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -29.6% (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 Shandong Huatai Paper Co., Ltd.

Interest

At CNY 52.2 MM has Grown at 14.33%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 184.94 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)

Net Sales

Lowest at CNY 3,066.04 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 25.96 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 6.24%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 5.03%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio