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SINO HUA-AN INTERNATIONAL (HUAAN-KU)

Mineral Resources / Metals & Mining / Iron & Steel DETAILED STOCK REPORT
Report Date: 08 January 2019

Last Close Avg Daily Vol 52-Week High Trailing PE Annual Div ROE LTG Forecast 1-Mo Return
0.16 (MYR) 9.0M 0.67 4.4 -- 11.4% -- -5.9%
08 January 2019 Market Cap 52-Week Low Forward PE Dividend Yield Annual Rev Inst Own 3-Mo Return
MALAYSIA Exchange
174M 0.13 -- -- 1.0B 0.7% -37.3%

AVERAGE SCORE
NEUTRAL OUTLOOK: HUAAN's current score Score Averages
is relatively in-line with the market. Metals & Mining Group: 4.9 Small Market Cap: 5.3
Mineral Resources Sector: 5.0 FBM KLCI Index: 6.6

Average Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend

Positive CHOOBEE 9 10 10 10 10
LEONFB 8 8 8 8 7
Neutral MASTEEL 5 5 6 5 7
HUAAN 6 7 7 7 6
Negative
ATTA 10 6 6 5 5
JAN-2016 JAN-2017 JAN-2018 JAN-2019

HIGHLIGHTS THOMSON REUTERS I/B/E/S MEAN


- The score for Sino Hua-An International has been on a
negative trend from 9 to 6 over the past 11 weeks. NA Mean recommendation from all analysts covering
0 Analysts the company on a standardized 5-point scale.
- The recent change in the Average Score was primarily due to a
decline in the Price Momentum component score.
Strong
Sell Reduce Hold Buy
Buy

PRICE AND VOLUME CHARTS


1-Year Return: -69.5% 5-Year Return: 14.3%

BUSINESS SUMMARY
Sino Hua-An International Berhad is a Malaysia-based investment holding company. The Company is engaged in manufacturing and sale of
metallurgical coke and other related by-products. The Company's segments are manufacturing and trading, and others. The Company's products
include tar oil, crude benzene, ammonium sulfate and coal gas. The Company's by-products include Coal Gas, Tar, Crude Benzene, Ammonia Sulfate,
Coal Slime and Middlings. The Company's subsidiaries include PIPO Overseas Limited in British Virgin Islands, which is engaged in investment
holding, and Linyi Yehua Coking Co. Ltd. in People's Republic of China, which is engaged in manufacturing and sales of metallurgical coke and other
related by-products.

Page 1 of 11
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The Financial and Risk business of Thomson Reuters is now Rifinitiv.
SINO HUA-AN INTERNATIONAL (HUAAN-KU)
Mineral Resources / Metals & Mining / Iron & Steel DETAILED STOCK REPORT
Report Date: 08 January 2019

INDICATOR COMPONENTS
The AVERAGE SCORE combines the quantitative analysis of five widely-used investment decision making tools: Earnings,
Fundamental, Relative Valuation, Risk, and Price Momentum. A simple average of the underlying component ratings is normally
distributed to rank stocks on a 1-10 scale (10 being awarded to the most favorable). These factors may be evaluated differently using
alternative methodologies and the importance of individual factors varies across industries, market capitalization and investment styles.
Additional criteria should always by used to evaluate a stock.

Earnings Fundamental Relative Valuation Risk Price Momentum

PEER ANALYSIS Currency in MYR

PRICE MOMENTUM VALUATION FUNDAMENTAL ANALYSTS


Average Price 1-Mo 3-Mo 1-Yr Market Trailing Forward Dividend Net LTG I/B/E/S # of
Score Ticker (08/01/19) Return Return Return Cap PE PE Yield Margin Forecast Mean Analysts
3 ROHAS 0.72 -16.3% -31.4% -53.2% 340M 12.9 9.3 2.8% 6.5% -- Strong Buy 1
9 PANTECH 0.44 -1.1% -8.3% -33.3% 329M 7.6 8.1 4.6% 7.3% -- Buy 4
2 HIAPTEK 0.25 -21.0% -36.4% -48.4% 316M 16.0 -- 2.0% 1.9% -- -- --
10 CHOOBEE 1.50 -1.3% -13.3% -31.8% 190M 4.3 4.0 3.3% 8.6% -- Hold 1
7 MASTEEL 0.46 12.3% -20.2% -65.1% 184M 4.4 -- 2.0% 2.8% -- -- --
6 HUAAN 0.16 -5.9% -37.3% -69.5% 174M 4.4 -- -- 4.0% -- -- --
7 LEONFB 0.48 -4.0% -17.9% -49.2% 146M 2.9 -- 3.1% 8.7% -- -- --
5 ATTA 0.60 -17.8% -25.0% -37.8% 128M 8.3 -- 13.3% 18.1% -- -- --
5 PRESTAR 0.54 -0.9% -24.5% -53.0% 107M 5.3 -- 7.4% 2.6% -- -- --
NR LYSAGHT 2.57 0.8% -4.1% -42.9% 104M 10.8 -- 2.7% 13.7% -- -- --
5 WZSATU 0.21 7.9% -31.7% -72.4% 100M -- 12.1 7.3% -17.5% -- Reduce 1
5.9 Average 0.72 -4.3% -22.7% -50.6% 193M 7.7 8.4 4.9% 5.2% -- Buy 1.8

PEER COMPANIES
ROHAS Rohas Tecnic LEONFB Leon Fuat
PANTECH Pantech Group Holdings ATTA ATTA Global Group
HIAPTEK Hiap Teck Venture PRESTAR Prestar Resources
CHOOBEE Choo Bee Metal Industries LYSAGHT Lysaght Galvanized Steel
MASTEEL Malaysia Steel Works (KL) WZSATU WZ Satu

Page 2 of 11
© 2018 Thomson Reuters. All rights reserved.
The Financial and Risk business of Thomson Reuters is now Rifinitiv.
SINO HUA-AN INTERNATIONAL (HUAAN-KU)
Mineral Resources / Metals & Mining / Iron & Steel DETAILED STOCK REPORT
Report Date: 08 January 2019

EARNINGS Currency in MYR

This company does not currently meet the data Earnings Score Averages
requirements to calculate a score for this Metals & Mining Group: 5.4 Small Market Cap: 5.2
component. Mineral Resources Sector: 5.6 FBM KLCI Index: 6.4

Earnings Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend

Positive CHOOBEE 4 9 10 10 9
ATTA NR NR NR NR NR
Neutral HUAAN NR NR NR NR NR
LEONFB NR NR NR NR NR
Negative
MASTEEL NR NR NR NR NR
JAN-2016 JAN-2017 JAN-2018 JAN-2019

EARNINGS INDICATORS
Earnings Surprises Estimate Revisions Recommendation Changes
(33.3% weight) (33.3% weight) (33.3% weight)

CHOOBEE

CHOOBEE

ATTA ATTA ATTA


HUAAN HUAAN CHOOBEE
LEONFB LEONFB HUAAN
MASTEEL MASTEEL LEONFB
MASTEEL
Last 4 Quarters Last 4 Weeks Last 120 Days
# Positive Surprises (> 2%) 0 # Up Revisions -- # Broker Upgrades 0
# Negative Surprises (< -2%) 0 # Down Revisions -- # Broker Downgrades 0
# In-Line Surprises (within 2%) 0 Avg Up Revisions --
Avg Surprise -- Avg Down Revisions --

HIGHLIGHTS PRICE TARGET


- Due to a lack of recent analyst activity, no Earnings Rating can be The chart indicates where analysts predict the stock price will be within
calculated for Sino Hua-An International. The average Earnings the next 12 months, as compared to the current price.
Rating for its Iron & Steel industry is 5.3 and the FTSE BURSA
MALAYSIA COMPOSITE index average is 6.3. 12-Month Price Target
Mean (MYR) --
- There have been no upward or downward broker recommendation
High --
changes for Sino Hua-An International over the past 120 days.
Data is not available Low --
Target vs. Current --
# of Analysts --

Current Price Price Target


(MYR)

Page 3 of 11
© 2018 Thomson Reuters. All rights reserved.
The Financial and Risk business of Thomson Reuters is now Rifinitiv.
SINO HUA-AN INTERNATIONAL (HUAAN-KU)
Mineral Resources / Metals & Mining / Iron & Steel DETAILED STOCK REPORT
Report Date: 08 January 2019

EARNINGS PER SHARE


Actuals Estimates

Earnings per share (EPS) is calculated Quarterly NA NA


by dividing a company's earnings by the Mean -- --
number of shares outstanding. Analysts Quarterly data is not available
tend to interpret a pattern of increasing High -- --
earnings as a sign of strength and flat Low -- --
or falling earnings as a sign of
# of Analysts -- --
weakness.

The charts provide a comparison NA NA NA NA


between a company's actual and
estimated EPS, including the high and Actuals Estimates
low forecasts.
Annual NA NA
Mean -- --
Annual data is not available
High -- --
Low -- --
# of Analysts -- --

NA NA NA NA

MEAN ESTIMATE TREND ANALYST RECOMMENDATIONS


Q Q Y Y Price Thomson Reuters I/B/E/S Mean: NA (0 Analysts)
-- -- -- -- Target
Current -- -- -- -- --
Strong Buy 0
30 Days Ago -- -- -- -- -- Buy 0
90 Days Ago -- -- -- -- -- Hold 0
% Change (90 Days) -- -- -- -- --
Reduce 0
Current Fiscal Year End: --
Next Expected Report Date: -- Sell 0

EARNINGS SURPRISES
Comparing a company's actual earnings to the mean expectation of Surprise Detail (Last 6 Periods)
analysts results in a difference referred to as a 'positive' or 'negative'
surprise. Research has shown that when a company reports a Surprise Announce Period End Actual Mean Surprise
surprise, it is often followed by more of the same surprise type. Type Date Date EPS EPS (%)
Surprise Summary (Last 12 Quarters)

Surprise Type Amount Percent There are no earnings surprises during this time period.
Positive Quarters (> 2%) 0 --
Negative Quarters (< -2%) 0 --
In-Line Quarters (within 2%) 0 --

ANNUAL REVENUE
A pattern of increasing sales in Actuals Estimates
conjunction with a rising EPS may
influence a buy recommendation, while NA NA
flat or falling sales and faltering
earnings may explain a sell Mean -- --
recommendation. A rising EPS with flat Annual revenue data is not available High -- --
or falling sales may result from
increased cost efficiency and margins, Low -- --
rather than market expansion. This Forecasted Growth -- --
chart shows the sales forecast trend of # of Analysts -- --
all analysts and the highest and lowest
projections for the current and next NA NA NA NA
fiscal year.

Page 4 of 11
© 2018 Thomson Reuters. All rights reserved.
The Financial and Risk business of Thomson Reuters is now Rifinitiv.
SINO HUA-AN INTERNATIONAL (HUAAN-KU)
Mineral Resources / Metals & Mining / Iron & Steel DETAILED STOCK REPORT
Report Date: 08 January 2019

FUNDAMENTAL
POSITIVE OUTLOOK: Strong fundamentals Fundamental Score Averages
such as high profit margins, low debt levels, or Metals & Mining Group: 6.0 Small Market Cap: 5.3
growing dividends. Mineral Resources Sector: 5.3 FBM KLCI Index: 6.2

Q1 Q2 Q3 Q4
Fundamental Score Trend Peers 2018 2018 2018 2018 Current 3Y Trend
CHOOBEE 10 10 9 8 10
Positive
HUAAN 10 10 10 NR 10
Neutral ATTA 8 10 10 10 8

Negative MASTEEL 7 7 7 4 8

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 LEONFB 7 7 7 6 7
2016 2017 2018

FUNDAMENTAL INDICATORS
Profitability Debt Earnings Quality Dividend
(25% weight) (25% weight) (25% weight) (25% weight)

CHOOB… LEONF…
CHOOB…
HUAAN CHOOB…
ATTA HUAAN
LEONF… MASTE…
HUAAN
ATTA ATTA

LEONF…
MASTE… MASTE…
MASTE…

CHOOB…
LEONF…
ATTA

HUAAN

Revenue Growth 66.1% Current Ratio 3.1 Oper. Cash Yield -84.8% Dividend Growth --
For year over year For interim period For latest 12 months For year over year
ending 09-2018 ending 09-2018 ending 09-2018 ending --
Gross Margin 6.1% Debt-to-Capital -- Accruals -- Dividend Payout --
For latest 12 months For annual period For latest 12 months For latest 12 months
ending 09-2018 ending -- ending -- ending --
Return On Equity 11.4% Interest Funding 2.2% Days Sales In Inv. 20.6 Dividend Coverage --
For interim period For interim period For annual period For annual period
ending 09-2018 ending 03-2018 ending 12-2017 ending --
Net Margin 4.0% Interest Coverage 38.5 Days Sales In Rec. 48.1 Current Div. Yield --
For latest 12 months For interim period For annual period For latest 12 months
ending 09-2018 ending 09-2018 ending 12-2017 ending --

HIGHLIGHTS
- Sino Hua-An International currently has a Fundamental Rating of 10, - The days sales in inventory for HUAAN is the lowest within its Metals
which is significantly more bullish than the Metals & Mining industry & Mining industry group.
group average of 6.0. - Sino Hua-An International does not currently pay a dividend. Of 30
- HUAAN's gross margin of 6.1% is substantially below the Metals & firms within the Metals & Mining industry group, it is among the 9
Mining industry group average of 9.3%. companies without a dividend.
- HUAAN's interest funding is substantially below the Metals & Mining
industry group average of 19.1%.

Page 5 of 11
© 2018 Thomson Reuters. All rights reserved.
The Financial and Risk business of Thomson Reuters is now Rifinitiv.
SINO HUA-AN INTERNATIONAL (HUAAN-KU)
Mineral Resources / Metals & Mining / Iron & Steel DETAILED STOCK REPORT
Report Date: 08 January 2019

RELATIVE VALUATION
POSITIVE OUTLOOK: Multiples significantly Relative Valuation Score Averages
below the market or the stock's historic norms. Metals & Mining Group: 7.3 Small Market Cap: 6.0
Mineral Resources Sector: 6.7 FBM KLCI Index: 2.1

Relative Valuation Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend

Positive CHOOBEE 10 10 10 10 10
HUAAN 9 9 9 9 9
Neutral LEONFB 9 9 9 8 9
MASTEEL 9 9 9 8 8
Negative
ATTA 9 7 6 7 7
JAN-2016 JAN-2017 JAN-2018 JAN-2019

RELATIVE VALUATION INDICATORS


Price to Sales Trailing PE Forward PE
(50% weight) (25% weight) (25% weight)

CHOOBEE
HUAAN
CHOOBEE LEONFB CHOOBEE
MASTEEL
ATTA

ATTA ATTA
HUAAN HUAAN
LEONFB LEONFB
MASTEEL MASTEEL

Price to Sales -- Trailing PE 4.4 Forward PE --


5-Yr Average 0.3 5-Yr Average 19.0 5-Yr Average --
Rel. to 5-Yr Avg. -- Rel. to 5-Yr Avg. 77% Discount Rel. to 5-Yr Avg. --
FBM KLCI Index 2.8 FBM KLCI Index 16.4 FBM KLCI Index 17.3
Rel. to FBM KLCI -- Rel. to FBM KLCI 73% Discount Rel. to FBM KLCI --

HIGHLIGHTS
- Sino Hua-An International currently has a Relative Valuation Rating of - HUAAN's 4.4 Trailing P/E is currently at the low end of its 5-year range
9 which is significantly above the FTSE BURSA MALAYSIA (lowest 3.6 to highest 73.0).
COMPOSITE index average rating of 2.3.

Page 6 of 11
© 2018 Thomson Reuters. All rights reserved.
The Financial and Risk business of Thomson Reuters is now Rifinitiv.
SINO HUA-AN INTERNATIONAL (HUAAN-KU)
Mineral Resources / Metals & Mining / Iron & Steel DETAILED STOCK REPORT
Report Date: 08 January 2019

PRICE TO SALES TRAILING PE


The most recent week's close price divided by the revenue per share. The most recent week's close price divided by the sum of the four most
recently reported quarterly earnings.
Price to Sales: -- Trailing PE: 4.4
5-Year Average: 0.3 5-Year Average: 19.0
FBM KLCI Index Average: 2.8 FBM KLCI Index Average: 16.4
Metals & Mining Group Average: 1.3 Metals & Mining Group Average: 18.1
2.0 >50
1.8 45
1.6 40
1.4 35
1.2 30
1.0 25
0.8 20 5-Yr Average
0.6 15
0.4 10
5-Yr Average
0.2 5
0.0 0
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

FORWARD PE FORWARD PEG


The most recent week's close price divided by the sum of the four The Forward P/E divided by the five-year forecasted growth rate.
upcoming quarterly consensus estimates.
Forward PE: -- Forward PEG: --
5-Year Average: -- 5-Year Average: --
FBM KLCI Index Average: 17.3 FBM KLCI Index Average: 1.8
Metals & Mining Group Average: 23.4 Metals & Mining Group Average: --
>50 >5.0
45 4.5
40 4.0
35 3.5
30 3.0
25 This valuation data is not available 2.5 This valuation data is not available
20 2.0
15 1.5
10 1.0
5 0.5
<0 <0.0
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

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© 2018 Thomson Reuters. All rights reserved.
The Financial and Risk business of Thomson Reuters is now Rifinitiv.
SINO HUA-AN INTERNATIONAL (HUAAN-KU)
Mineral Resources / Metals & Mining / Iron & Steel DETAILED STOCK REPORT
Report Date: 08 January 2019

RISK
NEUTRAL OUTLOOK: Moderate risk (medium Risk Score Averages
volatility). Metals & Mining Group: 5.3 Small Market Cap: 4.9
Mineral Resources Sector: 5.3 FBM KLCI Index: 8.5

Risk Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend

Positive CHOOBEE 9 9 10 10 9
LEONFB 9 8 8 7 7
Neutral MASTEEL 4 4 6 5 5
ATTA 4 5 3 4 4
Negative
HUAAN 2 3 4 3 4
JAN-2016 JAN-2017 JAN-2018 JAN-2019

RISK INDICATORS
Magnitude of Returns Volatility Beta (1-year) Correlation
(25% weight) (25% weight) (25% weight) (25% weight)

HUAAN
CHOOB… MASTE…
CHOOB…
LEONF… CHOOB…
LEONF…

ATTA
LEONF… CHOOB…
ATTA
ATTA LEONF…
MASTE…

ATTA
MASTE…
MASTE… HUAAN
HUAAN
HUAAN

Daily Returns (Last 90 Days) Standard Deviation Beta vs. FBM KLCI 3.26 Correlation vs. FBM KLCI
Best 10.6% Last 90 Days 4.49 Positive Days Only 2.95 Last 90 Days 53%
Worst -8.8% Last 60 Months 19.81 Negative Days Only 3.57 Last 60 Months 38%
Monthly Returns (Last 60 Months) Intra-Day Swing (Last 90 Days) Beta vs. Group 2.17 Correlation vs. Group
Best 73.3% Average 6.9% Positive Days Only 2.39 Last 90 Days 54%
Worst -50.0% Largest 16.7% Negative Days Only 1.87 Last 60 Months 35%

HIGHLIGHTS RISK ANALYSIS


- Sino Hua-An International currently has a Risk Rating of 4, Last 90 Days Last 60 Months
which is significantly below the FTSE BURSA MALAYSIA Best Worst # # Largest Best Worst
COMPOSITE index average rating of 8.9. Daily Daily Days Days Intra-Day Monthly Monthly
- On days when the market is up, HUAAN shares tends to Peers Return Return Up Down Swing Return Return
outperform the FTSE BURSA MALAYSIA COMPOSITE index. HUAAN 10.6% -8.8% 19 30 16.7% 73.3% -50.0%
However, on days when the market is down, the shares
generally decrease by more than the index. ATTA 13.8% -12.1% 17 26 18.2% 53.0% -22.8%
- In the short term, HUAAN has shown high correlation (>= 0.4) CHOOBEE 6.5% -6.5% 17 29 6.1% 21.0% -11.6%
with the FTSE BURSA MALAYSIA COMPOSITE index. The
stock has, however, shown average correlation (>= 0.2 and < LEONFB 6.0% -5.7% 16 25 24.7% 20.0% -23.9%
0.4) with the market in the long term.
MASTEEL 14.7% -5.5% 19 32 14.0% 62.8% -38.0%
- Over the last 90 days, HUAAN shares have been more volatile
than the overall market. The stock's daily price fluctuations FBM KLCI 1.4% -2.2% 28 33 2.8% 5.5% -6.9%
have exceeded that of all FTSE BURSA MALAYSIA
COMPOSITE index firms.

Page 8 of 11
© 2018 Thomson Reuters. All rights reserved.
The Financial and Risk business of Thomson Reuters is now Rifinitiv.
SINO HUA-AN INTERNATIONAL (HUAAN-KU)
Mineral Resources / Metals & Mining / Iron & Steel DETAILED STOCK REPORT
Report Date: 08 January 2019

PRICE MOMENTUM Currency in MYR

NEGATIVE OUTLOOK: Weak recent price Price Momentum Score Averages


performance or entering historically poor Metals & Mining Group: 2.6 Small Market Cap: 5.2
seasonal period. Mineral Resources Sector: 3.4 FBM KLCI Index: 7.5

Price Momentum Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend

Positive MASTEEL 1 2 1 2 4
ATTA 8 4 5 3 2
Neutral HUAAN 2 3 3 3 2
LEONFB 2 2 3 5 2
Negative
CHOOBEE 4 2 2 2 1
JAN-2016 JAN-2017 JAN-2018 JAN-2019

PRICE MOMENTUM INDICATORS


Relative Strength Seasonality
(70% weight) (30% weight)

MASTEEL LEONFB

ATTA ATTA
HUAAN CHOOBEE
CHOOBEE HUAAN
LEONFB MASTEEL

Relative Strength Indicator (Scale from 1 to 100) Average Monthly Return (Last 10 Years)
HUAAN Industry Avg JAN FEB MAR
Last 1 Month 43 41 Company Avg 3.6% 3.6% -6.0%
Last 3 Months 42 41 Industry Avg 1.7% -0.1% 0.0%
Last 6 Months 46 44 Industry Rank 38 of 52 38 of 51 46 of 51

PRICE PERFORMANCE
Daily close prices are used to calculate the HUAAN HUAAN FBM KLCI
performance of the stock as compared to a
FBM KLCI Close Price (08/01/19) 0.16 1,673
relevant index over five time periods.
52-Week High 0.67 1,895
6.7%
1-Week 52-Week Low 0.13 1,635
-1.1%

-5.9% - The Price Momentum Rating of 2 for Sino Hua-An International


1-Month
-0.5% is its lowest value for the past year.
- On 08/01/19, HUAAN closed at 0.16, 75.9% below its 52-week
-37.3%
3-Month high and 23.1% above its 52-week low.
-5.8%
- HUAAN shares are currently trading 15.3% below their 50-day
6.7% moving average of 0.19, and 44.4% below their 200-day
YTD moving average of 0.29.
-1.1%

-69.5%
1-Year
-8.7%

Page 9 of 11
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The Financial and Risk business of Thomson Reuters is now Rifinitiv.
SINO HUA-AN INTERNATIONAL (HUAAN-KU)
Mineral Resources / Metals & Mining / Iron & Steel DETAILED STOCK REPORT
Report Date: 08 January 2019

Mean Estimate Trend


DETAILED STOCK REPORT TIPS The mean estimates show how the consensus has changed over the past 30 days
and 90 days for the upcoming two quarters (when available) and two years. The
The Thomson Reuters Stock Report is a comprehensive, company-specific analysis percentage change is calculated for the company as a means for comparison by
that includes a proprietary Stock Rating along with underlying component indicators measuring the difference between the current consensus estimate and that of 90
and supportive data elements. The report is updated daily, although some of the days ago.
data elements and the ratings are updated weekly.
Analyst Recommendations
Average Score The I/B/E/S Mean is the average recommendation of all analysts covering the stock,
The Average Score combines a quantitative analysis of five widely-used investment as provided by Thomson Reuters I/B/E/S (Institutional Brokers Estimate System).
decision making tools - Earnings, Fundamental, Relative Valuation, Risk, and Price The recommendations are presented on a five-point standardized scale: strong buy,
Momentum. First, a simple average of the five underlying component ratings is buy, hold, reduce, and sell.
calculated. Then, a normal distribution is used to rank each stock across the market
on a scale of 1 to 10, with 10 being most favorable. A score of 8 to 10 is considered Earnings Surprises
positive, 4 to 7 is neutral, and 1 to 3 is negative. These five factors may be ● The surprise summary includes the total number of time periods (and
evaluated differently using alternative methodologies, and the importance of percentage) in the last 12 quarters (quarterly) or last 4 years (annual) in which
individual factors varies across industry groups, market capitalization and earnings surprises were positive, negative, or in-line. In order to be recognized
investment styles. Additional criteria should always be used to evaluate a stock. as a positive or negative surprise, the percent must be greater than 2% above or
2% below the consensus, respectively.
A company must have sufficient data available for at least three of the five ● The surprise detail section includes a listing of the company's quarterly earnings
component indicators in order to receive an overall Average Score. Approximately reported for the most recent 6 periods (quarters or years). The consensus
85% of the stocks within the coverage universe meet the criteria to generate a analyst estimate is provided to determine if the actual earnings report
score. represented a positive surprise, negative surprise, or in-line result.
Indicator Components Fundamental
The five indicators that comprise the stock rating are displayed. Like the stock The Fundamental Rating is based on a combination of four fundamental component
rating, the component rating scale is 1 to 10, with 10 being best. A company will factors: profitability, debt, earnings quality, and dividend. Companies that do not
receive an ‘NR’ for No Rating if the required data elements or criteria are not met. A pay a dividend are not penalized. Each factor is equally weighted. Then, equal
detailed section for each component is included in the report. deciles are used to rank each stock across the market on a scale of 1 to 10, with 10
being most favorable. A stock needs to have at least two of the four fundamental
Indicator Trends factors present in order to receive a score.
Within each component section, historical score trends are displayed, typically using
a 4-week moving average over a timeframe of the past three years. The dotted ● Profitability is comprised of four data elements.
orange line indicates the average of the scores over those three years. The most - Revenue Growth: (Net Sales – Previous Net Sales) / Previous Net Sales
recent occurrences of the best and worst scores are also displayed on the chart in - Gross Margin: Gross Profit / Net Sales
grey boxes to put the current score into historical context. - Return on Equity: Net Income / Total Equity
- Net Margin: Net Profit / Net Sales
Next to the trend chart for the company, current score averages are included, along ● Debt is comprised of four data elements.
with peer company comparisons of values from 6 months ago, 3 months ago, 1 - Current Ratio: Current Assets / Current Liabilities
month ago, the most recent value from 1 week ago, and the current score. The four - Debt-to-Capital: Total Debt / Total Capital
closest industry peers are presented based on similar market capitalization. - Interest Funding: (Interest Expense on Debt + Preferred Cash Dividends) /
Funds from Operations
Peer Analysis - Interest Coverage: Earnings before Interest and Taxes / (Interest Expense on
● The Thomson Reuters Business Classification (TRBC) system is used for Debt + Preferred Cash Dividends)
industry comparisons. It is designed to track and display the primary business of ● Earnings Quality is comprised of four data elements.
a corporation by grouping together correlated companies that offer products and - Operating Cash Yield: (Operating Cash Flow – Net Income) / Net Income
services into similar end markets. The system includes 10 Economic Sectors, 28 - Accruals: (Net Income – Operating Cash Flow – Investing Cash Flow) /
Business Sectors, 54 Industry Groups, and 136 Industries. Average Net Operating Assets
● The Peer Analysis section of the report compares the company to its ten closest - Days Sales in Inventory: 365 / (Cost of Goods Sold / Inventory)
peers. The peers are selected from the industry based on similar market - Days Sales in Receivables: 365 / (Net Sales / Receivables)
capitalization. The peer listing may have fewer than ten companies if there are ● Dividend is comprised of four data elements. The company must have a current
fewer than ten companies within that industry classification. dividend yield.
- Dividend Growth Rate: (Dividends per Share – Previous Dividends per Share)
Highlights / Previous Dividends per Share
The Thomson Reuters proprietary automated text-generation system creates - Dividend Payout: Dividends per Share / Earnings per Share
highlights summarizing the most noteworthy data. The bullets will vary by company - Dividend Coverage: Funds from Operations / Cash Dividends
and will change from week to week as different criteria are met. - Dividend Yield: Annual Dividends per Share / Current Market Price per Share

Earnings Indicator Trend


The Earnings Rating is based on a combination of three factors: earnings surprise, The fundamental indicator trend displays either quarterly scores over the past three
estimate revision, and recommendation changes. Each factor is equally weighted. years or annual scores over the past six years, depending on the reporting periods
Then, equal deciles are used to rank each stock across the market on a scale of 1 for the country. The best and worst scores can be easily determined from the
to 10, with 10 being most favorable. A stock needs to have at least two of the three values shown on the chart for each quarter or year.
earnings factors in order to receive a score.
Relative Valuation
● Earnings Surprises - The number of positive and negative surprises within the The Relative Valuation Rating is based on a combination of three component
last 4 periods (quarters or years). factors: Price to Sales (50% weight), Trailing P/E (25% weight), and Forward P/E
● Estimate Revisions - The number of up and down revisions and the average (25% weight). After the weightings are considered to combine individual factors,
percentage change of those revisions within a 4 week period. equal deciles are used to rank each stock across the market on a scale of 1 to 10,
● Recommendation Changes - The number of broker upgrades and downgrades in with 10 being most favorable. These common valuation metrics are evaluated
the last 120 days. against the overall market, the index, and the company's own historic 5-year
averages. A stock needs to have at least one of the three relative valuation factors
Price Target in order to receive a score.
The price target is based on the predictions of analysts covering the stock and
shows the high, low and mean price expected within the next 12 months. ● Price to Sales: Close Price / (Sales for 4 Quarters or 1 Year / Shares
Outstanding)
Earnings Per Share ● Trailing P/E: Close Price / Most Recent 4 Quarters or 1 Year of Earnings
The quarterly and annual earnings per share are presented when available, along ● Forward P/E: Close Price / Upcoming 4 Quarters or 1 Year of Earnings
with the mean, high and low. Quarterly data is displayed for the past 4 quarters
(actual) and the next 2 quarters (estimated). Annual data is displayed for the past 2
years (actual) and the next 2 years (estimated).

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SINO HUA-AN INTERNATIONAL (HUAAN-KU)
Mineral Resources / Metals & Mining / Iron & Steel DETAILED STOCK REPORT
Report Date: 08 January 2019

Valuation Averages
Negative values are excluded when calculating the averages. A maximum value of
100 is placed on Trailing P/E and Forward P/E, a maximum value of 5 is placed on
Forward PEG, and a maximum value of 20 is placed on Price to Sales when
calculating the averages. Higher values are rounded down to the maximum for the
averages.

Valuation Multiples
The valuation multiples provide the Trailing P/E, Forward P/E, Forward PEG, and
Price to Sales for the company and the S&P 500 index average. In addition, a
comparison of the current company’s values to its 5-year average and an industry
average are presented. A discount occurs when the company’s ratio is valued more
favorably (lower) than that to which it is compared.

Risk
The Risk Rating displays stocks on a scale of 1 to 10 with 10 being awarded to the
least risky stocks. It is derived by looking at a series of long-term (5-year) and
short-term (90-day) stock performance measures including volatility, magnitude of
returns, beta, and correlation. Each factor is equally weighted. Then, equal deciles
are used to rank each stock across the market. A stock needs to have at least two
of the four risk factors in order to receive a score.

● Magnitude of Returns – The best / worst daily returns in the past 90 days and the
best / worst monthly returns in the past 60 months.
● Volatility – The standard deviation of the stock price over the last 90 days and
last 60 months, along with the average and largest intra-day stock swing.
● Beta – Measures the tendency of a security’s returns to respond to swings in the
market, based on the beta of the company versus the relevant index.
● Correlation – Determines how closely the returns of the stock and the relevant
index move together, measured over the last 90 days and last 60 months.

Risk Analysis
Price analysis for the company and the relevant index is provided over two time
periods. Daily analysis is provided for the last 90 days, whereas monthly statistics
are used for the last 60 months.

Price Momentum
The Price Momentum Rating is based on a combination of two technical
performance factors: relative strength (70% weight) and seasonality (30% weight).
After the weightings are considered to combine individual factors, equal deciles are
used to rank each stock across the market on a scale of 1 to 10, with 10 being most
favorable. A stock needs to have data for the relative strength factor in order to
receive a score.

● Relative Strength – The relative strength of the company for the last 1 month, 3
months, and 6 months on a scale of 1 to 100.
● Seasonality – The average monthly return (price performance) for the current
month and next 2 months for the company and industry, over the past 10 years.
A lower industry rank indicates a higher return.

Price Performance
Daily close prices are used to calculate the price performance of the stock. The
performance of the relevant index is also displayed as a means of comparison.

DISCLAIMER
Republication or redistribution of Thomson Reuters content, including by framing
or similar means, is prohibited without the prior written consent of Thomson
Reuters. All information in this report is assumed to be accurate to the best of our
ability. Thomson Reuters is not liable for any errors or delays in Thomson
Reuters content, or for any actions taken in reliance on such content.

Any forward-looking statements included in the Thomson Reuters content are based
on certain assumptions and are subject to a number of risks and uncertainties that
could cause actual results to differ materially from current expectations. There is no
assurance that any forward-looking statements will materialize.

The content in this Thomson Reuters report does not constitute investment advice
or a recommendation to buy or sell securities of any kind. Past performance is not a
guarantee of future results. Investors should consider this report as only a single
factor when making an investment decision.

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