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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shanghai Huafon Aluminium Corp.

Why is Shanghai Huafon Aluminium Corp. ?

Poor Management Efficiency with a low ROCE of 11.97%

The company has been able to generate a Return on Capital Employed (avg) of 11.97% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 21.86% and Operating profit at 42.98% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 17.47% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 21.86% and Operating profit at 42.98% over the last 5 years

Flat results in Jun 26

ROCE(HY) Lowest at 19.02%
INTEREST(Q) At CNY 8.24 MM has Grown at 25.15%
DEBT-EQUITY RATIO (HY) Highest at 40.39 %

With ROE of 17.63%, it has a expensive valuation with a 2.11 Price to Book Value

Over the past year, while the stock has generated a return of -12.13%, its profits have fallen by -4.2%
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 Non - Ferrous Metals)

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

Is Shanghai Huafon Aluminium Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanghai Huafon Aluminium Corp.

-8.66%

-0.42

47.30%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.86%

EBIT Growth (5y)

42.98%

EBIT to Interest (avg)

21.21

Debt to EBITDA (avg)

1.63

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

1.42

Tax Ratio

12.16%

Dividend Payout Ratio

24.93%

Pledged Shares

Institutional Holding

ROCE (avg)

14.81%

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

2.11

EV to EBIT

12.90

EV to EBITDA

11.46

EV to Capital Employed

1.83

EV to Sales

1.31

PEG Ratio

Dividend Yield

2.12%

ROCE (Latest)

14.17%

ROE (Latest)

17.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -9.03% (YoY

NET SALES(Q)

Highest at CNY 3,441.51 MM

OPERATING PROFIT(Q)

Highest at CNY 436.47 MM

-6What is not working for the Company

ROCE(HY)

Lowest at 19.02%

INTEREST(Q)

At CNY 8.24 MM has Grown at 25.15%

DEBT-EQUITY RATIO (HY)

Highest at 40.39 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.37 times

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

Net Sales

Highest at CNY 3,441.51 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 436.47 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Raw Material Cost

Fallen by -9.03% (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 Huafon Aluminium Corp.

Interest

At CNY 8.24 MM has Grown at 25.15%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 40.39 %

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 3.37 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio