Xin Hee Co., Ltd. (003016) 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

Xin Hee Co., Ltd.

Why is Xin Hee Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 9.91%

The company has been able to generate a Return on Capital Employed (avg) of 9.91% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -5.27% and Operating profit at -184.01% over the last 5 years

The company has declared Negative results for the last 14 consecutive quarters

INTEREST(9M) At CNY 6.22 MM has Grown at 26.13%
NET PROFIT(HY) At CNY -35.4 MM has Grown at -144.21%
NET SALES(HY) At CNY 723.73 MM has Grown at -11.2%

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 4.52%, its profits have fallen by -2342.1%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 4.52% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.18%

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 Footwear)

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

Is Xin Hee Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Xin Hee Co., Ltd.

-100.0%

0.85

45.27%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.27%

EBIT Growth (5y)

-184.01%

EBIT to Interest (avg)

50.34

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

0.51

Tax Ratio

23.81%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

9.91%

ROE (avg)

4.30%

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

0.42

EV to EBIT

-1.93

EV to EBITDA

4.36

EV to Capital Employed

0.12

EV to Sales

0.15

PEG Ratio

Dividend Yield

ROCE (Latest)

-6.11%

ROE (Latest)

-2.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 225.43 MM

PRE-TAX PROFIT(Q)

At CNY 6.42 MM has Grown at 126.76%

RAW MATERIAL COST(Y)

Fallen by -15.5% (YoY

NET PROFIT(Q)

Highest at CNY 4.8 MM

EPS(Q)

Highest at CNY 0.01

-21What is not working for the Company

INTEREST(9M)

At CNY 6.22 MM has Grown at 26.13%

NET PROFIT(HY)

At CNY -35.4 MM has Grown at -144.21%

NET SALES(HY)

At CNY 723.73 MM has Grown at -11.2%

ROCE(HY)

Lowest at -2.44%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.83%

Here's what is working for Xin Hee Co., Ltd.

Operating Cash Flow

Highest at CNY 225.43 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)

Pre-Tax Profit

At CNY 6.42 MM has Grown at 126.76%

over average net sales of the previous four periods of CNY -24 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 4.8 MM has Grown at 125.47%

over average net sales of the previous four periods of CNY -18.82 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Profit

Highest at CNY 4.8 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -15.5% (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 Xin Hee Co., Ltd.

Interest

At CNY 6.22 MM has Grown at 26.13%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 723.73 MM has Grown at -11.2%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 0.83% and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at CNY 0.85 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income