Shanxi Huhua Group Co., Ltd. (003002) 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 Huhua Group Co., Ltd.

Why is Shanxi Huhua Group Co., Ltd. ?

The company has declared Negative results for the last 5 consecutive quarters

INTEREST(HY) At CNY 2.3 MM has Grown at 430.87%
INTEREST COVERAGE RATIO(Q) Lowest at 5,166.35
CASH AND EQV(HY) Lowest at CNY 506.2 MM

With ROE of 12.45%, it has a fair valuation with a 3.21 Price to Book Value

Over the past year, while the stock has generated a return of -6.41%, its profits have fallen by -8.1%
At the current price, the company has a high dividend yield of 0.3

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 13.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -6.41% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shanxi Huhua Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

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

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

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanxi Huhua Group Co., Ltd.

-3.87%

2.49

45.55%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.11%

EBIT Growth (5y)

14.23%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.87

Tax Ratio

15.32%

Dividend Payout Ratio

21.43%

Pledged Shares

Institutional Holding

ROCE (avg)

16.68%

ROE (avg)

11.75%

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

3.21

EV to EBIT

24.69

EV to EBITDA

17.86

EV to Capital Employed

3.31

EV to Sales

3.72

PEG Ratio

Dividend Yield

0.25%

ROCE (Latest)

13.39%

ROE (Latest)

12.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

5What is working for the Company

NET SALES(HY)

At CNY 746.75 MM has Grown at 24.44%

RAW MATERIAL COST(Y)

Fallen by -19.41% (YoY

-14What is not working for the Company

INTEREST(HY)

At CNY 2.3 MM has Grown at 430.87%

INTEREST COVERAGE RATIO(Q)

Lowest at 5,166.35

CASH AND EQV(HY)

Lowest at CNY 506.2 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.63 times

OPERATING PROFIT MARGIN(Q)

Lowest at 13.98 %

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

Net Sales

At CNY 746.75 MM has Grown at 24.44%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -19.41% (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 Huhua Group Co., Ltd.

Interest

At CNY 2.3 MM has Grown at 430.87%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 5,166.35 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 13.98 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 506.2 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 2.63 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio