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

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 21.26% and Operating profit at 10.86% 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 Sep 25

INTEREST COVERAGE RATIO(Q) Lowest at 360.66
INTEREST(Q) Highest at CNY 90.49 MM
OPERATING PROFIT(Q) Lowest at CNY 326.37 MM

With ROE of 11.31%, it has a fair valuation with a 2.02 Price to Book Value

Over the past year, while the stock has generated a return of 8.76%, its profits have fallen by -9.2%
At the current price, the company has a high dividend yield of 2.1

Underperformed the market in the last 1 year

The stock has generated a return of 8.76% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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.

1.87%

1.01

27.07%

China Shanghai Composite

15.17%

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)

21.26%

EBIT Growth (5y)

10.86%

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

2.02

EV to EBIT

27.28

EV to EBITDA

16.28

EV to Capital Employed

1.44

EV to Sales

2.40

PEG Ratio

Dividend Yield

2.12%

ROCE (Latest)

5.26%

ROE (Latest)

11.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

11What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 5.64 times

RAW MATERIAL COST(Y)

Fallen by -5.02% (YoY

NET SALES(Q)

Highest at CNY 3,071.58 MM

PRE-TAX PROFIT(Q)

Highest at CNY 299.39 MM

NET PROFIT(Q)

Highest at CNY 301.62 MM

EPS(Q)

Highest at CNY 0.4

-13What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 360.66

INTEREST(Q)

Highest at CNY 90.49 MM

OPERATING PROFIT(Q)

Lowest at CNY 326.37 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.63 %

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

Debtors Turnover Ratio

Highest at 5.64 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

Highest at CNY 3,071.58 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 299.39 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 301.62 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.4

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -5.02% (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 Xianhe Co., Ltd.

Interest Coverage Ratio

Lowest at 360.66

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 90.49 MM

in the last five periods and Increased by 5.7% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 326.37 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 10.63 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales