Xianhe Co., Ltd. (603733) 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

Xianhe Co., Ltd.

Why is Xianhe 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 21.07% and Operating profit at 11.43% 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 12.35% signifying low profitability per unit of shareholders funds

Flat results in Mar 25

NET PROFIT(HY) At CNY 419.39 MM has Grown at -22.45%
DEBT-EQUITY RATIO (HY) Highest at 141.3 %
INTEREST COVERAGE RATIO(Q) Lowest at 326.2

With ROE of 11.31%, it has a fair valuation with a 2.10 Price to Book Value

Over the past year, while the stock has generated a return of 20.97%, its profits have fallen by -9.2%
At the current price, the company has a high dividend yield of 2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Xianhe Co., Ltd. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

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

Is Xianhe Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Xianhe Co., Ltd.

-100.0%

0.81

29.50%

China Shanghai Composite

15.19%

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)

21.07%

EBIT Growth (5y)

11.43%

EBIT to Interest (avg)

9.05

Debt to EBITDA (avg)

4.26

Net Debt to Equity (avg)

1.41

Sales to Capital Employed (avg)

0.54

Tax Ratio

11.13%

Dividend Payout Ratio

35.16%

Pledged Shares

Institutional Holding

ROCE (avg)

7.33%

ROE (avg)

12.35%

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

2.10

EV to EBIT

27.91

EV to EBITDA

16.66

EV to Capital Employed

1.47

EV to Sales

2.45

PEG Ratio

Dividend Yield

2.04%

ROCE (Latest)

5.26%

ROE (Latest)

11.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly 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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 707.55 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4.78%

NET SALES(Q)

At CNY 2,969.55 MM has Grown at 35.46%

-21What is not working for the Company

NET PROFIT(HY)

At CNY 419.39 MM has Grown at -22.45%

DEBT-EQUITY RATIO (HY)

Highest at 141.3 %

INTEREST COVERAGE RATIO(Q)

Lowest at 326.2

OPERATING PROFIT MARGIN(Q)

Lowest at 9.05 %

RAW MATERIAL COST(Y)

Grown by 17.39% (YoY

INTEREST(Q)

Highest at CNY 82.43 MM

OPERATING PROFIT(Q)

Lowest at CNY 268.89 MM

Here's what is working for Xianhe Co., Ltd.

Operating Cash Flow

Highest at CNY 707.55 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 2,969.55 MM has Grown at 35.46%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 4.78%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Interest

At CNY 82.43 MM has Grown at 92.93%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 326.2

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 9.05 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY 419.39 MM has Grown at -22.45%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 141.3 % and Grown

In each half year 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

Interest

Highest at CNY 82.43 MM

in the last five periods and Increased by 92.93% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 268.89 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Raw Material Cost

Grown by 17.39% (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