Shanghai Huafon Aluminium Corp. (601702) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shanghai Huafon Aluminium Corp.

Why is Shanghai Huafon Aluminium Corp. ?

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at CNY 205.63 MM
INTEREST(Q) At CNY 11.63 MM has Grown at 12.05%
RAW MATERIAL COST(Y) Grown by 23.33% (YoY)

With ROE of 21.19%, it has a expensive valuation with a 2.86 Price to Book Value

Over the past year, while the stock has generated a return of 18.55%, its profits have risen by 17.8% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 1.8

Market Beating performance in long term as well as near term

Along with generating 18.55% 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 Shanghai Huafon Aluminium Corp. should be less than 10%
Overall Portfolio exposure to Non - Ferrous Metals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Non - Ferrous Metals)

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

Is Shanghai Huafon Aluminium Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanghai Huafon Aluminium Corp.

18.55%

-0.07

34.39%

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)

27.08%

EBIT Growth (5y)

37.51%

EBIT to Interest (avg)

11.57

Debt to EBITDA (avg)

1.65

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

1.43

Tax Ratio

11.82%

Dividend Payout Ratio

24.60%

Pledged Shares

Institutional Holding

ROCE (avg)

11.97%

ROE (avg)

17.47%

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

2.86

EV to EBIT

14.85

EV to EBITDA

13.18

EV to Capital Employed

2.38

EV to Sales

1.57

PEG Ratio

0.76

Dividend Yield

1.80%

ROCE (Latest)

16.02%

ROE (Latest)

21.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bearish

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

4What is working for the Company

NET SALES(HY)

At CNY 5,942.36 MM has Grown at 20.91%

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 205.63 MM

INTEREST(Q)

At CNY 11.63 MM has Grown at 12.05%

RAW MATERIAL COST(Y)

Grown by 23.33% (YoY

Here's what is working for Shanghai Huafon Aluminium Corp.

Net Sales

At CNY 5,942.36 MM has Grown at 20.91%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Depreciation

At CNY 52.93 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (CNY MM)

Here's what is not working for Shanghai Huafon Aluminium Corp.

Operating Cash Flow

Lowest at CNY 205.63 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)

Interest

At CNY 11.63 MM has Grown at 12.05%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 23.33% (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

Non Operating Income

Highest at CNY 0.16 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income