Xuancheng Valin Precision Technology Co., Ltd. (603356) 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

Xuancheng Valin Precision Technology Co., Ltd.

Why is Xuancheng Valin Precision Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.41%

The company has been able to generate a Return on Capital Employed (avg) of 2.41% signifying low profitability per unit of total capital (equity and debt)

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 -12.16% and Operating profit at -205.57% 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 2.03% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -12.16% and Operating profit at -205.57% over the last 5 years

The company has declared negative results for the last 10 consecutive quarters

NET SALES(HY) At CNY 490.77 MM has Grown at -19.85%
OPERATING CASH FLOW(Y) Lowest at CNY 87.99 MM
NET PROFIT(HY) At CNY -53.64 MM has Grown at -30.95%

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 Building Products)

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

Is Xuancheng Valin Precision Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Xuancheng Valin Precision Technology Co., Ltd.

10.62%

1.98

36.75%

China Shanghai Composite

8.25%

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)

-14.98%

EBIT Growth (5y)

-197.20%

EBIT to Interest (avg)

-3.25

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

1.03

Sales to Capital Employed (avg)

1.11

Tax Ratio

0.26%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.58%

ROE (avg)

2.03%

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

7.64

EV to EBIT

-27.39

EV to EBITDA

-32.85

EV to Capital Employed

3.81

EV to Sales

3.20

PEG Ratio

Dividend Yield

ROCE (Latest)

-13.91%

ROE (Latest)

-34.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly 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

DEBTORS TURNOVER RATIO(HY)

Highest at 3.03 times

NET PROFIT(Q)

Highest at CNY -20.83 MM

EPS(Q)

Highest at CNY -0.16

-14What is not working for the Company

ROCE(HY)

Lowest at -37.52%

DEBT-EQUITY RATIO (HY)

Highest at 138.65 %

INTEREST(Q)

At CNY 5.18 MM has Grown at 12.79%

RAW MATERIAL COST(Y)

Grown by 253.85% (YoY

NET SALES(Q)

Lowest at CNY 167.33 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -14 %

Here's what is working for Xuancheng Valin Precision Technology Co., Ltd.

Net Profit

Highest at CNY -20.83 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY -0.16

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 3.03 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Xuancheng Valin Precision Technology Co., Ltd.

Net Sales

At CNY 167.33 MM has Fallen at -30.03%

over average net sales of the previous four periods of CNY 239.14 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 5.18 MM has Grown at 12.79%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 138.65 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales

Lowest at CNY 167.33 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit Margin

Lowest at -14 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 253.85% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales