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. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -4.25% and Operating profit at -7.45% over the last 5 years
The company is Net-Debt Free
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 -4.25% and Operating profit at -7.45% over the last 5 years

With a fall in Operating Profit of -56.7%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 10 consecutive quarters
The company has declared negative results in Dec 23 after 4 consecutive negative quarters
NET PROFIT(HY) At CNY -119.26 MM has Grown at -153.37%
ROCE(HY) Lowest at 3%
DEBTORS TURNOVER RATIO(HY) Lowest at 0.36 times

With ROE of 2.99%, it has a very expensive valuation with a 0.83 Price to Book Value

Over the past year, while the stock has generated a return of 11.16%, its profits have fallen by -38.5%
At the current price, the company has a high dividend yield of 2.4

Underperformed the market in the last 1 year

The stock has generated a return of 11.16% in the last 1 year, much lower than market (China Shanghai Composite) returns of 23.91%

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 Power)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is CECEP Solar Energy Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

CECEP Solar Energy Co., Ltd.

8.6%

-0.13

38.63%

China Shanghai Composite

21.43%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.25%

EBIT Growth (5y)

-7.45%

EBIT to Interest (avg)

2.93

Debt to EBITDA (avg)

5.18

Net Debt to Equity (avg)

0.84

Sales to Capital Employed (avg)

0.15

Tax Ratio

22.15%

Dividend Payout Ratio

36.27%

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

0.83

EV to EBIT

28.10

EV to EBITDA

15.15

EV to Capital Employed

0.91

EV to Sales

8.92

PEG Ratio

Dividend Yield

2.35%

ROCE (Latest)

3.24%

ROE (Latest)

2.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 4,158.91 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 22.04 times

RAW MATERIAL COST(Y)

Fallen by 0.62% (YoY

-27What is not working for the Company

NET PROFIT(HY)

At CNY -119.26 MM has Grown at -153.37%

ROCE(HY)

Lowest at 3%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.36 times

NET SALES(Q)

At CNY 1,061.14 MM has Fallen at -13.94%

INTEREST(Q)

At CNY 160.96 MM has Grown at 13.42%

DEBT-EQUITY RATIO (HY)

Highest at 105.15 %

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

Operating Cash Flow

Highest at CNY 4,158.91 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)

Inventory Turnover Ratio

Highest at 22.04 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 0.62% (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 Profit

At CNY -119.26 MM has Grown at -153.37%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 1,061.14 MM has Fallen at -13.94%

over average net sales of the previous four periods of CNY 1,232.99 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 160.96 MM has Grown at 13.42%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 0.36 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Debt-Equity Ratio

Highest at 105.15 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income

Highest at CNY 0.18 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income