Xinjiang Western Animal Husbandry Co., Ltd. (300106) 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 Western Animal Husbandry Co., Ltd.

Why is Xinjiang Western Animal Husbandry Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.36%

The company has been able to generate a Return on Capital Employed (avg) of 4.36% 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 1.48% and Operating profit at -237.58% over the last 5 years

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 106.98 MM
ROCE(HY) Highest at -9.09%
DEBT-EQUITY RATIO (HY) Lowest at -32.51 %

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 -3.88%, its profits have risen by 90%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 20.18% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -3.88% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Xinjiang Western Animal Husbandry Co., Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Xinjiang Western Animal Husbandry Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Xinjiang Western Animal Husbandry Co., Ltd.

-6.11%

1.63

42.19%

China Shanghai Composite

19.22%

1.46

13.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.48%

EBIT Growth (5y)

-237.58%

EBIT to Interest (avg)

-1.69

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.15

Sales to Capital Employed (avg)

1.47

Tax Ratio

0.81%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.36%

ROE (avg)

4.52%

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

6.94

EV to EBIT

-37.09

EV to EBITDA

-79.48

EV to Capital Employed

10.72

EV to Sales

2.52

PEG Ratio

Dividend Yield

ROCE (Latest)

-28.90%

ROE (Latest)

-2.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

24What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 106.98 MM

ROCE(HY)

Highest at -9.09%

DEBT-EQUITY RATIO (HY)

Lowest at -32.51 %

INVENTORY TURNOVER RATIO(HY)

Highest at 10.39 times

PRE-TAX PROFIT(Q)

At CNY 7.18 MM has Grown at 193.33%

NET PROFIT(Q)

At CNY 4.96 MM has Grown at 139.14%

RAW MATERIAL COST(Y)

Fallen by -41.58% (YoY

CASH AND EQV(HY)

Highest at CNY 748.16 MM

-4What is not working for the Company

INTEREST(Q)

At CNY 1.63 MM has Grown at 331.46%

Here's what is working for Xinjiang Western Animal Husbandry Co., Ltd.

Operating Cash Flow

Highest at CNY 106.98 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 7.18 MM has Grown at 193.33%

over average net sales of the previous four periods of CNY -7.69 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 4.96 MM has Grown at 139.14%

over average net sales of the previous four periods of CNY -12.67 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at -32.51 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 10.39 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

Cash and Eqv

Highest at CNY 748.16 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -41.58% (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 Western Animal Husbandry Co., Ltd.

Interest

At CNY 1.63 MM has Grown at 331.46%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Non Operating Income

Highest at CNY 1.33 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income