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

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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 15.34% and Operating profit at 21.05% over the last 5 years

Flat results in Mar 25

OPERATING CASH FLOW(Y) Lowest at CNY 194.6 MM
INTEREST(Q) At CNY 18.49 MM has Grown at 16.42%
INTEREST COVERAGE RATIO(Q) Lowest at 714.52

With ROE of 12.06%, it has a very attractive valuation with a 1.99 Price to Book Value

Over the past year, while the stock has generated a return of 35.77%, 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 2.2

Market Beating performance in long term as well as near term

Along with generating 35.77% 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 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.

35.77%

1.47

42.38%

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)

15.34%

EBIT Growth (5y)

21.05%

EBIT to Interest (avg)

22.83

Debt to EBITDA (avg)

0.15

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

0.77

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

1.99

EV to EBIT

15.27

EV to EBITDA

9.93

EV to Capital Employed

2.15

EV to Sales

2.03

PEG Ratio

0.76

Dividend Yield

2.23%

ROCE (Latest)

14.08%

ROE (Latest)

12.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

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

7What is working for the Company

ROCE(HY)

Highest at 16.14%

RAW MATERIAL COST(Y)

Fallen by -28.68% (YoY

CASH AND EQV(HY)

Highest at CNY 3,310.39 MM

PRE-TAX PROFIT(Q)

Highest at CNY 147.36 MM

NET PROFIT(Q)

Highest at CNY 134.22 MM

EPS(Q)

Highest at CNY 0.29

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 194.6 MM

INTEREST(Q)

At CNY 18.49 MM has Grown at 16.42%

INTEREST COVERAGE RATIO(Q)

Lowest at 714.52

OPERATING PROFIT(Q)

Lowest at CNY 132.14 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.66 %

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

Pre-Tax Profit

Highest at CNY 147.36 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 134.22 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.29

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 3,310.39 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -28.68% (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 Shanxi Huaxiang Group Co., Ltd.

Interest

At CNY 18.49 MM has Grown at 16.42%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 714.52

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 194.6 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 132.14 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 13.66 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales