Yechiu Metal Recycling (China) Ltd. (601388) 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

Yechiu Metal Recycling (China) Ltd.

Why is Yechiu Metal Recycling (China) Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 7.08% and Operating profit at -27.08% over the last 5 years

The company has declared Negative results for the last 12 consecutive quarters

NET PROFIT(HY) At CNY -33.45 MM has Grown at -179.41%
OPERATING CASH FLOW(Y) Lowest at CNY -31.73 MM
INTEREST(HY) At CNY 31.23 MM has Grown at 16.53%

With ROE of -0.39%, it has a risky valuation with a 1.25 Price to Book Value

Over the past year, while the stock has generated a return of 5.05%, its profits have fallen by -116.6%
At the current price, the company has a high dividend yield of 0.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Yechiu Metal Recycling (China) Ltd. should be less than 10%
Overall Portfolio exposure to Non - Ferrous Metals should be less than 30%

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

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

Is Yechiu Metal Recycling (China) Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Yechiu Metal Recycling (China) Ltd.

5.05%

0.61

37.37%

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)

7.08%

EBIT Growth (5y)

-27.08%

EBIT to Interest (avg)

13.77

Debt to EBITDA (avg)

0.17

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

1.28

Tax Ratio

76.21%

Dividend Payout Ratio

59.52%

Pledged Shares

Institutional Holding

ROCE (avg)

13.20%

ROE (avg)

9.59%

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

1.25

EV to EBIT

90.66

EV to EBITDA

22.41

EV to Capital Employed

1.24

EV to Sales

0.79

PEG Ratio

Dividend Yield

0.19%

ROCE (Latest)

1.37%

ROE (Latest)

-0.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

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

5What is working for the Company

NET PROFIT(Q)

At CNY 20.45 MM has Grown at 207.86%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.99%

DEBTORS TURNOVER RATIO(HY)

Highest at 11.05%

PRE-TAX PROFIT(Q)

At CNY 27.97 MM has Grown at 62.08%

-24What is not working for the Company

NET PROFIT(HY)

At CNY -33.45 MM has Grown at -179.41%

OPERATING CASH FLOW(Y)

Lowest at CNY -31.73 MM

INTEREST(HY)

At CNY 31.23 MM has Grown at 16.53%

ROCE(HY)

Lowest at 0.27%

RAW MATERIAL COST(Y)

Grown by 13.99% (YoY

CASH AND EQV(HY)

Lowest at CNY 1,986.04 MM

OPERATING PROFIT(Q)

Lowest at CNY 38.35 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.14 %

Here's what is working for Yechiu Metal Recycling (China) Ltd.

Net Profit

At CNY 20.45 MM has Grown at 207.86%

over average net sales of the previous four periods of CNY 6.64 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

At CNY 27.97 MM has Grown at 62.08%

over average net sales of the previous four periods of CNY 17.26 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Highest at 4.99%

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 11.05%

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 Yechiu Metal Recycling (China) Ltd.

Interest

At CNY 31.23 MM has Grown at 16.53%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -31.73 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 38.35 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.14 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 1,986.04 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 13.99% (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