Shandong Humon Smelting Co. Ltd. (002237) 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 Humon Smelting Co. Ltd.

Why is Shandong Humon Smelting 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 19.45% and Operating profit at -0.66% 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 5.37% signifying low profitability per unit of shareholders funds
RAW MATERIAL COST(Y) Fallen by -42.42% (YoY)
PRE-TAX PROFIT(Q) At CNY 218.98 MM has Grown at 98.48%
NET PROFIT(Q) At CNY 218.75 MM has Grown at 70.39%

With ROE of 6.27%, it has a attractive valuation with a 1.31 Price to Book Value

Over the past year, while the stock has generated a return of 21.38%, its profits have risen by 26.8% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 1.2

Market Beating performance in long term as well as near term

Along with generating 21.38% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shandong Humon Smelting Co. Ltd. should be less than 10%
Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gems, Jewellery And Watches)

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

Is Shandong Humon Smelting Co. Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shandong Humon Smelting Co. Ltd.

19.23%

0.38

35.57%

China Shanghai Composite

14.77%

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)

19.45%

EBIT Growth (5y)

-0.66%

EBIT to Interest (avg)

2.93

Debt to EBITDA (avg)

4.70

Net Debt to Equity (avg)

1.20

Sales to Capital Employed (avg)

3.28

Tax Ratio

17.21%

Dividend Payout Ratio

30.16%

Pledged Shares

Institutional Holding

ROCE (avg)

6.93%

ROE (avg)

5.37%

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

1.31

EV to EBIT

40.99

EV to EBITDA

20.45

EV to Capital Employed

1.14

EV to Sales

0.33

PEG Ratio

0.78

Dividend Yield

1.23%

ROCE (Latest)

2.78%

ROE (Latest)

6.27%

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

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -42.42% (YoY

PRE-TAX PROFIT(Q)

At CNY 218.98 MM has Grown at 98.48%

NET PROFIT(Q)

At CNY 218.75 MM has Grown at 70.39%

-16What is not working for the Company

INTEREST(HY)

At CNY 187.25 MM has Grown at 31.17%

NET PROFIT(HY)

At CNY 219.04 MM has Grown at -34.51%

OPERATING CASH FLOW(Y)

Lowest at CNY -3,494.02 MM

ROCE(HY)

Lowest at 5.67%

DEBT-EQUITY RATIO (HY)

Highest at 120.47 %

Here's what is working for Shandong Humon Smelting Co. Ltd.

Pre-Tax Profit

At CNY 218.98 MM has Grown at 98.48%

over average net sales of the previous four periods of CNY 110.33 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 218.75 MM has Grown at 70.39%

over average net sales of the previous four periods of CNY 128.39 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -42.42% (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 Humon Smelting Co. Ltd.

Interest

At CNY 187.25 MM has Grown at 31.17%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -3,494.02 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 120.47 %

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