XXF Group Holdings Ltd. () 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

XXF Group Holdings Ltd.

Why is XXF Group Holdings Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.51%

Poor long term growth as Net Sales has grown by an annual rate of 13.56% and Operating profit at 12.67% over the last 5 years
The company is Net-Debt Free

Flat results in Jun 26

ROCE(HY) Lowest at 4.08%
RAW MATERIAL COST(Y) Grown by 8.42% (YoY)
PRE-TAX PROFIT(Q) Lowest at HKD 22.35 MM

With ROE of 5.11%, it has a Very Expensive valuation with a 1.17 Price to Book Value

Over the past year, while the stock has generated a return of -96.51%, its profits have risen by 15.3%

Below par performance in long term as well as near term

Along with generating -96.51% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in the last 3 years, 1 year and 3 months

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 Retailing)

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

Is XXF Group Holdings Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

XXF Group Holdings Ltd.

-100.0%

-0.59

127.25%

Hang Seng Hong Kong

-6.63%

-0.36

18.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.56%

EBIT Growth (5y)

12.67%

EBIT to Interest (avg)

1.34

Debt to EBITDA (avg)

6.00

Net Debt to Equity (avg)

2.37

Sales to Capital Employed (avg)

0.53

Tax Ratio

17.83%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.60%

ROE (avg)

8.88%

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

1.17

EV to EBIT

15.65

EV to EBITDA

9.32

EV to Capital Employed

1.04

EV to Sales

1.89

PEG Ratio

Dividend Yield

ROCE (Latest)

6.67%

ROE (Latest)

5.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

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

9What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 238.42

CASH AND EQV(HY)

Highest at HKD 520.23 MM

DEBT-EQUITY RATIO (HY)

Lowest at 190.46 %

INVENTORY TURNOVER RATIO(HY)

Highest at 8.89 times

DEBTORS TURNOVER RATIO(HY)

Highest at 2.32 times

OPERATING PROFIT(Q)

Highest at HKD 223.46 MM

-6What is not working for the Company

ROCE(HY)

Lowest at 4.08%

RAW MATERIAL COST(Y)

Grown by 8.42% (YoY

PRE-TAX PROFIT(Q)

Lowest at HKD 22.35 MM

NET PROFIT(Q)

Lowest at HKD 20.33 MM

EPS(Q)

Lowest at HKD 0.01

Here's what is working for XXF Group Holdings Ltd.

Interest Coverage Ratio

Highest at 238.42

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at HKD 223.46 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (HKD MM)

Cash and Eqv

Highest at HKD 520.23 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 190.46 %

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 8.89 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 2.32 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at HKD 104.41 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Depreciation

At HKD 104.41 MM has Grown at 16.95%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for XXF Group Holdings Ltd.

Pre-Tax Profit

Lowest at HKD 22.35 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 20.33 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD 0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Raw Material Cost

Grown by 8.42% (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

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