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

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 -1.94% and Operating profit at 26.61% 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 -1.94% and Operating profit at 26.61% over the last 5 years

Flat results in Sep 25

INTEREST COVERAGE RATIO(Q) Lowest at 152.92
INTEREST(Q) Highest at CNY 40.02 MM
OPERATING PROFIT(Q) Lowest at CNY 61.2 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 66.84%, 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

Market Beating Performance

The stock has generated a return of 66.84% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%

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

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Yinchuan Xinhua Commercial Group Co., Ltd.

-12.18%

0.69

46.76%

China Shanghai Composite

19.22%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.36%

EBIT Growth (5y)

27.92%

EBIT to Interest (avg)

1.13

Debt to EBITDA (avg)

1.60

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

1.63

Tax Ratio

27.94%

Dividend Payout Ratio

60.59%

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

1.48

EV to EBIT

15.12

EV to EBITDA

5.27

EV to Capital Employed

1.35

EV to Sales

0.70

PEG Ratio

Dividend Yield

2.38%

ROCE (Latest)

8.92%

ROE (Latest)

2.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 936.1 MM

OPERATING PROFIT MARGIN(Q)

Highest at 14.01 %

-23What is not working for the Company

ROCE(HY)

Lowest at 3.32%

INTEREST COVERAGE RATIO(Q)

Lowest at 474.08

RAW MATERIAL COST(Y)

Grown by 19.44% (YoY

NET SALES(Q)

Lowest at CNY 1,265.45 MM

PRE-TAX PROFIT(Q)

Lowest at CNY -40.29 MM

NET PROFIT(Q)

Lowest at CNY -35.73 MM

EPS(Q)

Lowest at CNY -0.1

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

Operating Cash Flow

Highest at CNY 936.1 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Operating Profit Margin

Highest at 14.01 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

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

Pre-Tax Profit

At CNY -40.29 MM has Fallen at -268.42%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -35.73 MM has Fallen at -257.81%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 474.08

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 1,265.45 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Pre-Tax Profit

Lowest at CNY -40.29 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -35.73 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.1

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 19.44% (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