Shanghai Haixin Group Co., Ltd. (600851) 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

Shanghai Haixin Group Co., Ltd.

Why is Shanghai Haixin Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.46%

The company has been able to generate a Return on Capital Employed (avg) of 0.46% 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 -6.86% and Operating profit at 16.84% over the last 5 years

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

INTEREST(HY) At CNY 1.51 MM has Grown at 42.24%
NET SALES(HY) At CNY 356.21 MM has Grown at -18.3%
NET PROFIT(HY) At CNY 45.32 MM has Grown at -29.33%

With ROE of 3.97%, it has a fair valuation with a 1.09 Price to Book Value

Over the past year, while the stock has generated a return of 15.82%, its profits have fallen by -6.9%
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 Shanghai Haixin Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)

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

Is Shanghai Haixin Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Haixin Group Co., Ltd.

15.82%

0.90

41.96%

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)

-6.86%

EBIT Growth (5y)

16.84%

EBIT to Interest (avg)

-0.99

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

0.25

Tax Ratio

14.19%

Dividend Payout Ratio

32.00%

Pledged Shares

Institutional Holding

ROCE (avg)

0.46%

ROE (avg)

3.67%

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

1.09

EV to EBIT

266.41

EV to EBITDA

105.18

EV to Capital Employed

1.12

EV to Sales

5.33

PEG Ratio

Dividend Yield

0.61%

ROCE (Latest)

0.42%

ROE (Latest)

3.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.85% (YoY

CASH AND EQV(HY)

Highest at CNY 1,541.06 MM

-17What is not working for the Company

INTEREST(HY)

At CNY 1.51 MM has Grown at 42.24%

NET SALES(HY)

At CNY 356.21 MM has Grown at -18.3%

NET PROFIT(HY)

At CNY 45.32 MM has Grown at -29.33%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.67%

Here's what is working for Shanghai Haixin Group Co., Ltd.

Cash and Eqv

Highest at CNY 1,541.06 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -4.85% (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 Shanghai Haixin Group Co., Ltd.

Interest

At CNY 1.51 MM has Grown at 42.24%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 356.21 MM has Grown at -18.3%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Net Profit

At CNY 45.32 MM has Grown at -29.33%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 4.67%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio