Xinjiang International Industry Co., Ltd. (000159) 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

Xinjiang International Industry Co., Ltd.

Why is Xinjiang International Industry Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.41%

The company has been able to generate a Return on Capital Employed (avg) of 1.41% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 24.66% and Operating profit at 42.22% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.30% signifying low profitability per unit of shareholders funds

Positive results in Mar 26

INVENTORY TURNOVER RATIO(HY) Highest at 19.12 times
RAW MATERIAL COST(Y) Fallen by -1.66% (YoY)
NET PROFIT(9M) Higher at CNY 20.54 MM

With ROE of 1.77%, it has a very expensive valuation with a 1.53 Price to Book Value

Over the past year, while the stock has generated a return of -1.76%, its profits have risen by 108.3% ; the PEG ratio of the company is 0.8

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.76% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Xinjiang International Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

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

Is Xinjiang International Industry Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Xinjiang International Industry Co., Ltd.

-2.09%

0.13

39.90%

China Shanghai Composite

8.25%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.66%

EBIT Growth (5y)

42.22%

EBIT to Interest (avg)

1.36

Debt to EBITDA (avg)

7.88

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

0.82

Tax Ratio

28.72%

Dividend Payout Ratio

25.28%

Pledged Shares

Institutional Holding

ROCE (avg)

2.20%

ROE (avg)

5.30%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.24

EV to EBIT

30.28

EV to EBITDA

22.79

EV to Capital Employed

1.19

EV to Sales

1.52

PEG Ratio

0.65

Dividend Yield

ROCE (Latest)

3.93%

ROE (Latest)

1.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

16What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 19.12 times

RAW MATERIAL COST(Y)

Fallen by -1.66% (YoY

NET PROFIT(9M)

Higher at CNY 20.54 MM

CASH AND EQV(HY)

Highest at CNY 1,047.15 MM

NET SALES(Q)

At CNY 450.08 MM has Grown at 25.51%

-7What is not working for the Company

NET PROFIT(HY)

At CNY 25.2 MM has Grown at -65.55%

OPERATING CASH FLOW(Y)

Lowest at CNY -24.33 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.5 %

Here's what is working for Xinjiang International Industry Co., Ltd.

Inventory Turnover Ratio

Highest at 19.12 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

At CNY 450.08 MM has Grown at 25.51%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 1,047.15 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -1.66% (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 Xinjiang International Industry Co., Ltd.

Net Profit

At CNY 25.2 MM has Grown at -65.55%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -24.33 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit Margin

Lowest at 5.5 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales