CECEP Solar Energy Co., Ltd. (000591) 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

CECEP Solar Energy Co., Ltd.

Why is CECEP Solar Energy 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 0.77% and Operating profit at -3.25% 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 6.79% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 0.77% and Operating profit at -3.25% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

NET SALES(HY) At CNY 2,800.74 MM has Grown at -16.71%
INTEREST(HY) At CNY 330.3 MM has Grown at 15.34%
ROCE(HY) Lowest at 4.41%

With ROE of 4.56%, it has a very expensive valuation with a 0.81 Price to Book Value

Over the past year, while the stock has generated a return of 24.30%, its profits have fallen by -27%
At the current price, the company has a high dividend yield of 2.3

Market Beating Performance

The stock has generated a return of 24.30% in the last 1 year, much higher than market (China Shanghai Composite) returns of 13.33%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to CECEP Solar Energy 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 CECEP Solar Energy Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

CECEP Solar Energy Co., Ltd.

33.84%

0.47

29.41%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.77%

EBIT Growth (5y)

-3.25%

EBIT to Interest (avg)

2.93

Debt to EBITDA (avg)

5.18

Net Debt to Equity (avg)

0.84

Sales to Capital Employed (avg)

0.18

Tax Ratio

22.15%

Dividend Payout Ratio

36.08%

Pledged Shares

Institutional Holding

ROCE (avg)

5.95%

ROE (avg)

6.79%

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

0.81

EV to EBIT

22.11

EV to EBITDA

11.98

EV to Capital Employed

0.90

EV to Sales

7.68

PEG Ratio

Dividend Yield

2.26%

ROCE (Latest)

4.08%

ROE (Latest)

4.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

5What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 55.13%

RAW MATERIAL COST(Y)

Fallen by -6.93% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 16.61 times

DIVIDEND PER SHARE(HY)

Highest at CNY 0.42

NET PROFIT(Q)

At CNY 448.55 MM has Grown at 64.94%

-14What is not working for the Company

NET SALES(HY)

At CNY 2,800.74 MM has Grown at -16.71%

INTEREST(HY)

At CNY 330.3 MM has Grown at 15.34%

ROCE(HY)

Lowest at 4.41%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.42 times

Here's what is working for CECEP Solar Energy Co., Ltd.

Net Profit

At CNY 448.55 MM has Grown at 64.94%

over average net sales of the previous four periods of CNY 271.96 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 16.61 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at CNY 0.42

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 55.13%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -6.93% (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 CECEP Solar Energy Co., Ltd.

Net Sales

At CNY 2,800.74 MM has Grown at -16.71%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 330.3 MM has Grown at 15.34%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 0.42 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio