Yinchuan Xinhua Commercial Group Co., Ltd. (600785) 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

Yinchuan Xinhua Commercial Group Co., Ltd.

Why is Yinchuan Xinhua Commercial Group Co., Ltd. ?

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 -1.85% and Operating profit at 18.40% 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 3.19% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -1.85% and Operating profit at 18.40% over the last 5 years

Flat results in Mar 25

INTEREST COVERAGE RATIO(Q) Lowest at 366.82
DEBTORS TURNOVER RATIO(HY) Lowest at 15.35%
OPERATING PROFIT(Q) Lowest at CNY 123.63 MM

With ROE of 4.52%, it has a very attractive valuation with a 1.28 Price to Book Value

Over the past year, while the stock has generated a return of 11.49%, its profits have risen by 9.6% ; the PEG ratio of the company is 3
At the current price, the company has a high dividend yield of 1.9

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Yinchuan Xinhua Commercial Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is Yinchuan Xinhua Commercial Group Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Yinchuan Xinhua Commercial Group Co., Ltd.

11.49%

-0.18

46.78%

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)

-1.85%

EBIT Growth (5y)

18.40%

EBIT to Interest (avg)

1.13

Debt to EBITDA (avg)

1.60

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

1.62

Tax Ratio

27.94%

Dividend Payout Ratio

41.81%

Pledged Shares

Institutional Holding

ROCE (avg)

6.59%

ROE (avg)

3.19%

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

1.28

EV to EBIT

13.43

EV to EBITDA

4.68

EV to Capital Employed

1.21

EV to Sales

0.62

PEG Ratio

2.95

Dividend Yield

1.94%

ROCE (Latest)

8.98%

ROE (Latest)

4.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,060.61 MM

DEBT-EQUITY RATIO (HY)

Lowest at 121.97 %

RAW MATERIAL COST(Y)

Fallen by -13.49% (YoY

NET PROFIT(9M)

Higher at CNY 123.51 MM

PRE-TAX PROFIT(Q)

Highest at CNY 94.79 MM

-5What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 366.82

DEBTORS TURNOVER RATIO(HY)

Lowest at 15.35%

OPERATING PROFIT(Q)

Lowest at CNY 123.63 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.74 %

Here's what is working for Yinchuan Xinhua Commercial Group Co., Ltd.

Debt-Equity Ratio

Lowest at 121.97 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Operating Cash Flow

Highest at CNY 1,060.61 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 94.79 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Higher at CNY 123.51 MM

than preceding 12 month period ended Mar 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost

Fallen by -13.49% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Here's what is not working for Yinchuan Xinhua Commercial Group Co., Ltd.

Interest Coverage Ratio

Lowest at 366.82

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 123.63 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.74 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 15.35%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio