XinhuaNet Co., Ltd. (603888) 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

XinhuaNet Co., Ltd.

Why is XinhuaNet Co., Ltd. ?

Flat results in Mar 25

INTEREST(9M) At CNY 2.97 MM has Grown at inf%
NET PROFIT(9M) At CNY 151.01 MM has Grown at -21.82%
ROCE(HY) Lowest at 7.01%

With ROE of 7.45%, it has a expensive valuation with a 3.58 Price to Book Value

Over the past year, while the stock has generated a return of 0.46%, its profits have fallen by -4.8%
At the current price, the company has a high dividend yield of 0.5

Underperformed the market in the last 1 year

The stock has generated a return of 0.46% in the last 1 year, much lower than market (China Shanghai Composite) returns of 14.77%

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 Computers - Software & Consulting)

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

Is XinhuaNet Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

XinhuaNet Co., Ltd.

3.83%

-0.24

36.78%

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)

8.78%

EBIT Growth (5y)

139.93%

EBIT to Interest (avg)

83.55

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.66

Sales to Capital Employed (avg)

0.59

Tax Ratio

33.13%

Dividend Payout Ratio

23.21%

Pledged Shares

Institutional Holding

ROCE (avg)

21.75%

ROE (avg)

7.28%

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

3.58

EV to EBIT

49.84

EV to EBITDA

31.50

EV to Capital Employed

7.54

EV to Sales

5.06

PEG Ratio

Dividend Yield

0.46%

ROCE (Latest)

15.13%

ROE (Latest)

7.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Bullish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 575.29 MM

RAW MATERIAL COST(Y)

Fallen by -2.28% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 390.35%

DEBTORS TURNOVER RATIO(HY)

Highest at 5.27%

-16What is not working for the Company

INTEREST(9M)

At CNY 2.97 MM has Grown at inf%

NET PROFIT(9M)

At CNY 151.01 MM has Grown at -21.82%

ROCE(HY)

Lowest at 7.01%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,861.18

NET SALES(Q)

Lowest at CNY 328.66 MM

OPERATING PROFIT(Q)

Lowest at CNY 21.73 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.61 %

PRE-TAX PROFIT(Q)

Lowest at CNY 42.54 MM

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

Operating Cash Flow

Highest at CNY 575.29 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)

Inventory Turnover Ratio

Highest at 390.35%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.27%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -2.28% (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 XinhuaNet Co., Ltd.

Interest

At CNY 2.97 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 2,861.18

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 111.61 MM has Grown at -28.71%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 328.66 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 21.73 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.61 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 42.54 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)