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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shandong Humon Smelting Co. Ltd.

Why is Shandong Humon Smelting Co. Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 25.63% and Operating profit at -6.34% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.37% signifying low profitability per unit of shareholders funds

Negative results in Mar 26

INTEREST(9M) At CNY 300.76 MM has Grown at 13%
ROCE(HY) Lowest at 5.65%
INTEREST COVERAGE RATIO(Q) Lowest at 284.49

With ROE of 4.20%, it has a expensive valuation with a 1.12 Price to Book Value

Over the past year, while the stock has generated a return of 32.65%, its profits have risen by 7.9%
At the current price, the company has a high dividend yield of 2.1

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 Gems, Jewellery And Watches)

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

Is Shandong Humon Smelting Co. Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shandong Humon Smelting Co. Ltd.

19.49%

0.55

50.86%

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)

25.63%

EBIT Growth (5y)

-6.34%

EBIT to Interest (avg)

2.93

Debt to EBITDA (avg)

4.70

Net Debt to Equity (avg)

1.20

Sales to Capital Employed (avg)

3.61

Tax Ratio

17.21%

Dividend Payout Ratio

24.81%

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

1.11

EV to EBIT

27.09

EV to EBITDA

17.11

EV to Capital Employed

1.06

EV to Sales

0.21

PEG Ratio

Dividend Yield

2.10%

ROCE (Latest)

3.92%

ROE (Latest)

4.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

13What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 58.11 times

NET SALES(Q)

At CNY 32,868.82 MM has Grown at 16.98%

-21What is not working for the Company

INTEREST(9M)

At CNY 300.76 MM has Grown at 13%

ROCE(HY)

Lowest at 5.65%

INTEREST COVERAGE RATIO(Q)

Lowest at 284.49

RAW MATERIAL COST(Y)

Grown by 7.27% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 258.89 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.79 %

PRE-TAX PROFIT(Q)

Lowest at CNY -0.05 MM

NET PROFIT(Q)

Lowest at CNY 48.71 MM

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

Net Sales

At CNY 32,868.82 MM has Grown at 16.98%

over average net sales of the previous four periods of CNY 28,098.61 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 58.11 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 Shandong Humon Smelting Co. Ltd.

Pre-Tax Profit

At CNY -0.05 MM has Fallen at -100.03%

over average net sales of the previous four periods of CNY 180.67 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 48.71 MM has Fallen at -74.01%

over average net sales of the previous four periods of CNY 187.41 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 300.76 MM has Grown at 13%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 284.49

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 258.89 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.79 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -0.05 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 48.71 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 7.27% (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