Why is Xuancheng Valin Precision Technology Co., Ltd. ?
1
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)
2
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
3
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
4
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%
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.
28.94%
1.98
36.75%
China Shanghai Composite
15.17%
1.58
14.20%
Quality key factors
Factor
Value
Sales Growth (5y)
-12.16%
EBIT Growth (5y)
-205.57%
EBIT to Interest (avg)
-0.64
Debt to EBITDA (avg)
4.55
Net Debt to Equity (avg)
1.03
Sales to Capital Employed (avg)
1.12
Tax Ratio
9.90%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.41%
ROE (avg)
2.03%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
4.26
EV to EBIT
-15.20
EV to EBITDA
-32.48
EV to Capital Employed
2.52
EV to Sales
2.21
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-16.57%
ROE (Latest)
-45.61%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Bullish
Technical Movement
3What is working for the Company
NET PROFIT(HY)
Higher at CNY -53.64 MM
-23What is not working for the Company
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%
ROCE(HY)
Lowest at -37.17%
DEBT-EQUITY RATIO
(HY)
Highest at 115.18 %
INTEREST(Q)
At CNY 5.54 MM has Grown at 89.4%
RAW MATERIAL COST(Y)
Grown by 242.93% (YoY
Here's what is working for Xuancheng Valin Precision Technology Co., Ltd.
Net Profit
Higher at CNY -53.64 MM
than preceding 12 month period ended Sep 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (CNY MM)
Here's what is not working for Xuancheng Valin Precision Technology Co., Ltd.
Net Sales
At CNY 490.77 MM has Grown at -19.85%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (CNY MM)
Operating Cash Flow
Lowest at CNY 87.99 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Interest
At CNY 5.54 MM has Grown at 89.4%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Profit
At CNY -53.64 MM has Grown at -30.95%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
Debt-Equity Ratio
Highest at 115.18 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 242.93% (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






