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 Management Efficiency with a low ROCE of 13.88%

The company has been able to generate a Return on Capital Employed (avg) of 13.88% 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 14.64% and Operating profit at 16.94% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 12.69% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 14.64% and Operating profit at 16.94% over the last 5 years

Negative results in Jun 26

ROCE(HY) Lowest at 12.12%
INVENTORY TURNOVER RATIO(HY) Lowest at 3.66 times
INTEREST(Q) At CNY 8.08 MM has Grown at 86.85%

With ROE of 12.82%, it has a attractive valuation with a 2.03 Price to Book Value

Over the past year, while the stock has generated a return of 3.40%, its profits have risen by 22.7% ; the PEG ratio of the company is 3.7
At the current price, the company has a high dividend yield of 2.6

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.

5.06%

1.20

47.38%

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)

14.64%

EBIT Growth (5y)

16.94%

EBIT to Interest (avg)

9.76

Debt to EBITDA (avg)

0.14

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

0.78

Tax Ratio

10.84%

Dividend Payout Ratio

40.23%

Pledged Shares

Institutional Holding

ROCE (avg)

13.11%

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

2.03

EV to EBIT

15.40

EV to EBITDA

10.85

EV to Capital Employed

2.18

EV to Sales

2.05

PEG Ratio

3.65

Dividend Yield

2.56%

ROCE (Latest)

14.14%

ROE (Latest)

12.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

DIVIDEND PAYOUT RATIO(Y)

Highest at 90.32%

CASH AND EQV(HY)

Highest at CNY 3,979.87 MM

NET SALES(Q)

Highest at CNY 1,151.9 MM

-12What is not working for the Company

ROCE(HY)

Lowest at 12.12%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.66 times

INTEREST(Q)

At CNY 8.08 MM has Grown at 86.85%

RAW MATERIAL COST(Y)

Grown by 17.77% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.64 times

OPERATING PROFIT MARGIN(Q)

Lowest at 18.26 %

PRE-TAX PROFIT(Q)

Lowest at CNY 127.66 MM

NET PROFIT(Q)

Lowest at CNY 113.23 MM

EPS(Q)

Lowest at CNY 0.16

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

Net Sales

Highest at CNY 1,151.9 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 3,979.87 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 90.32%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Shanxi Huaxiang Group Co., Ltd.

Interest

At CNY 8.08 MM has Grown at 86.85%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 3.66 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit Margin

Lowest at 18.26 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 127.66 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 113.23 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.16

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 2.64 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 17.77% (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