Taiyuan Heavy Industry Co., Ltd. (600169) 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

Taiyuan Heavy Industry Co., Ltd.

Why is Taiyuan Heavy Industry 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 4.79% and Operating profit at 30.71% 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 3.85% signifying low profitability per unit of shareholders funds
INTEREST(HY) At CNY 215.62 MM has Grown at 99.7%
NET SALES(Q) At CNY 2,269.85 MM has Fallen at -12.44%
INTEREST COVERAGE RATIO(Q) Lowest at 172.49

With ROE of 3.80%, it has a attractive valuation with a 1.71 Price to Book Value

Over the past year, while the stock has generated a return of -4.67%, its profits have risen by 24.9%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -4.67% returns

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 Automobiles)

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

Is Taiyuan Heavy Industry Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Taiyuan Heavy Industry Co., Ltd.

-12.77%

0.82

34.39%

China Shanghai Composite

23.91%

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)

4.52%

EBIT Growth (5y)

2.65%

EBIT to Interest (avg)

2.88

Debt to EBITDA (avg)

12.81

Net Debt to Equity (avg)

2.98

Sales to Capital Employed (avg)

0.40

Tax Ratio

20.06%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.38%

ROE (avg)

3.85%

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

1.44

EV to EBIT

31.07

EV to EBITDA

18.59

EV to Capital Employed

1.12

EV to Sales

2.10

PEG Ratio

0.54

Dividend Yield

ROCE (Latest)

3.59%

ROE (Latest)

6.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,282.58 MM

ROCE(HY)

Highest at 4.58%

RAW MATERIAL COST(Y)

Fallen by -7.6% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 281.89 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.04 times

-7What is not working for the Company

INTEREST(9M)

At CNY 288.61 MM has Grown at 44.98%

NET PROFIT(Q)

At CNY 25.72 MM has Fallen at -56.2%

Here's what is working for Taiyuan Heavy Industry Co., Ltd.

Operating Cash Flow

Highest at CNY 2,282.58 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at 281.89 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.04 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -7.6% (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 Taiyuan Heavy Industry Co., Ltd.

Interest

At CNY 288.61 MM has Grown at 44.98%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 25.72 MM has Fallen at -56.2%

over average net sales of the previous four periods of CNY 58.74 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)