Shanxi Huaxiang Group Co., Ltd. (603112) 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

Shanxi Huaxiang Group Co., Ltd.

Why is Shanxi Huaxiang Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 16.18% and Operating profit at 20.03% over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY -27.29 MM
RAW MATERIAL COST(Y) Grown by 12.02% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 3.84 times

With ROE of 12.06%, it has a very attractive valuation with a 2.15 Price to Book Value

Over the past year, while the stock has generated a return of 37.94%, its profits have risen by 23.6% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 2.1

Market Beating Performance

The stock has generated a return of 37.94% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shanxi Huaxiang Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Shanxi Huaxiang Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanxi Huaxiang Group Co., Ltd.

10.74%

1.22

44.05%

China Shanghai Composite

13.33%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.18%

EBIT Growth (5y)

20.03%

EBIT to Interest (avg)

22.83

Debt to EBITDA (avg)

0.15

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

0.78

Tax Ratio

10.27%

Dividend Payout Ratio

40.76%

Pledged Shares

Institutional Holding

ROCE (avg)

13.88%

ROE (avg)

12.69%

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

2.15

EV to EBIT

16.60

EV to EBITDA

10.79

EV to Capital Employed

2.34

EV to Sales

2.20

PEG Ratio

0.82

Dividend Yield

2.06%

ROCE (Latest)

14.08%

ROE (Latest)

12.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

4What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

DEBT-EQUITY RATIO (HY)

Lowest at -13.33 %

DEBTORS TURNOVER RATIO(HY)

Highest at 2.9 times

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -27.29 MM

RAW MATERIAL COST(Y)

Grown by 12.02% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.84 times

OPERATING PROFIT(Q)

Lowest at CNY 116.78 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.6 %

EPS(Q)

Lowest at CNY 0.22

Here's what is working for Shanxi Huaxiang Group Co., Ltd.

Debt-Equity Ratio

Lowest at -13.33 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 2.9 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 Shanxi Huaxiang Group Co., Ltd.

Operating Cash Flow

Lowest at CNY -27.29 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 116.78 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 11.6 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at CNY 0.22

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 3.84 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 12.02% (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