Sichuan Hongda Co., Ltd. (600331) 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

Sichuan Hongda Co., Ltd.

Why is Sichuan Hongda Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 8.57% and Operating profit at -7.98% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 17.86% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.57% and Operating profit at -7.98% over the last 5 years

With a fall in Net Sales of -5.89%, the company declared Very Negative results in Mar 25

OPERATING CASH FLOW(Y) Lowest at CNY 5.9 MM
NET PROFIT(Q) At CNY -35.93 MM has Fallen at -556.33%
RAW MATERIAL COST(Y) Grown by 95.27% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 28.05%, its profits have fallen by -434.5%

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 Minerals & Mining)

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

Is Sichuan Hongda Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sichuan Hongda Co., Ltd.

28.05%

1.72

39.69%

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)

8.57%

EBIT Growth (5y)

-7.98%

EBIT to Interest (avg)

-3.41

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

3.41

Sales to Capital Employed (avg)

2.60

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.30%

ROE (avg)

17.86%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

6.97

EV to EBIT

-319.78

EV to EBITDA

575.95

EV to Capital Employed

14.65

EV to Sales

5.87

PEG Ratio

Dividend Yield

ROCE (Latest)

-4.58%

ROE (Latest)

-3.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

NET SALES(HY)

At CNY 1,804.81 MM has Grown at 21.01%

INVENTORY TURNOVER RATIO(HY)

Highest at 8.15%

-19What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 5.9 MM

NET PROFIT(Q)

At CNY -35.93 MM has Fallen at -556.33%

RAW MATERIAL COST(Y)

Grown by 95.27% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 341.12 %

OPERATING PROFIT(Q)

Lowest at CNY -25.62 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.13 %

PRE-TAX PROFIT(Q)

Lowest at CNY -35.75 MM

Here's what is working for Sichuan Hongda Co., Ltd.

Net Sales

At CNY 1,804.81 MM has Grown at 21.01%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 8.15%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Sichuan Hongda Co., Ltd.

Pre-Tax Profit

At CNY -35.75 MM has Fallen at -774.56%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -35.93 MM has Fallen at -556.33%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 5.9 MM and Fallen

In each year 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 -25.62 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -3.13 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -35.75 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 341.12 %

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

Raw Material Cost

Grown by 95.27% (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