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

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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 -8.66% and Operating profit at -209.66% 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 -8.66% and Operating profit at -209.66% over the last 5 years

With a fall in PBT of -22.69%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 10 consecutive quarters
NET PROFIT(HY) At CNY -124.67 MM has Grown at -130.73%
ROCE(HY) Lowest at -30.69%
INTEREST(Q) At CNY 7.82 MM has Grown at 47.99%

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 -7.90%, its profits have fallen by -79.2%

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, Medium Return

Absolute

Risk Adjusted

Volatility

Xuancheng Valin Precision Technology Co., Ltd.

-7.9%

0.26

40.41%

China Shanghai Composite

14.77%

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)

-8.66%

EBIT Growth (5y)

-209.66%

EBIT to Interest (avg)

-0.64

Debt to EBITDA (avg)

4.55

Net Debt to Equity (avg)

1.03

Sales to Capital Employed (avg)

1.13

Tax Ratio

9.90%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.41%

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

2.82

EV to EBIT

-11.15

EV to EBITDA

-23.83

EV to Capital Employed

1.85

EV to Sales

1.62

PEG Ratio

Dividend Yield

ROCE (Latest)

-16.57%

ROE (Latest)

-45.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 2.79%

-32What is not working for the Company

NET PROFIT(HY)

At CNY -124.67 MM has Grown at -130.73%

ROCE(HY)

Lowest at -30.69%

INTEREST(Q)

At CNY 7.82 MM has Grown at 47.99%

RAW MATERIAL COST(Y)

Grown by 32.75% (YoY

CASH AND EQV(HY)

Lowest at CNY 231.57 MM

DEBT-EQUITY RATIO (HY)

Highest at 104.77 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.43%

NET SALES(Q)

Lowest at CNY 188.81 MM

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

Debtors Turnover Ratio

Highest at 2.79%

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 Profit

At CNY -124.67 MM has Grown at -130.73%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 188.81 MM has Fallen at -31.97%

over average net sales of the previous four periods of CNY 277.56 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 7.82 MM has Grown at 47.99%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 188.81 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 7.82 MM

in the last five periods and Increased by 47.99% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 231.57 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 104.77 %

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

Inventory Turnover Ratio

Lowest at 6.43%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 32.75% (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