An Hui Wenergy Co., Ltd. (000543) 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

An Hui Wenergy Co., Ltd.

Why is An Hui Wenergy Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.84%

The company has been able to generate a Return on Capital Employed (avg) of 2.84% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 9.11% and Operating profit at 26.75% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 9.01% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

NET PROFIT(HY) At CNY 687.43 MM has Grown at -25.65%
NET SALES(Q) At CNY 5,996.93 MM has Fallen at -11.99%
INTEREST COVERAGE RATIO(Q) Lowest at 403.35

With ROE of 17.97%, it has a attractive valuation with a 1.12 Price to Book Value

Over the past year, while the stock has generated a return of 9.70%, its profits have risen by 3.7% ; the PEG ratio of the company is 1.7
At the current price, the company has a high dividend yield of 3.7

Underperformed the market in the last 1 year

The stock has generated a return of 9.70% in the last 1 year, much lower than market (China Shanghai Composite) returns of 21.43%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to An Hui Wenergy Co., Ltd. should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

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

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

Is An Hui Wenergy Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

An Hui Wenergy Co., Ltd.

8.31%

-0.26

33.22%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.11%

EBIT Growth (5y)

26.75%

EBIT to Interest (avg)

0.88

Debt to EBITDA (avg)

11.08

Net Debt to Equity (avg)

2.09

Sales to Capital Employed (avg)

0.55

Tax Ratio

19.25%

Dividend Payout Ratio

39.97%

Pledged Shares

Institutional Holding

ROCE (avg)

2.84%

ROE (avg)

9.01%

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

1.12

EV to EBIT

15.46

EV to EBITDA

10.03

EV to Capital Employed

1.04

EV to Sales

1.98

PEG Ratio

1.69

Dividend Yield

3.67%

ROCE (Latest)

6.74%

ROE (Latest)

17.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 6,069.66 MM

DEBT-EQUITY RATIO (HY)

Lowest at 191.07 %

RAW MATERIAL COST(Y)

Fallen by -1.98% (YoY

CASH AND EQV(HY)

Highest at CNY 7,352.88 MM

-15What is not working for the Company

NET PROFIT(HY)

At CNY 687.43 MM has Grown at -25.65%

NET SALES(Q)

At CNY 5,996.93 MM has Fallen at -11.99%

INTEREST COVERAGE RATIO(Q)

Lowest at 403.35

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.32 times

OPERATING PROFIT(Q)

Lowest at CNY 729.87 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.17 %

Here's what is working for An Hui Wenergy Co., Ltd.

Operating Cash Flow

Highest at CNY 6,069.66 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at 191.07 % 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

Cash and Eqv

Highest at CNY 7,352.88 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -1.98% (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 An Hui Wenergy Co., Ltd.

Net Sales

At CNY 5,996.93 MM has Fallen at -11.99%

over average net sales of the previous four periods of CNY 6,813.6 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 403.35

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 687.43 MM has Grown at -25.65%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 729.87 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 12.17 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 6.32 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio