China Petroleum Engineering Corp. (600339) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

China Petroleum Engineering Corp.

Why is China Petroleum Engineering Corp. ?

Poor Management Efficiency with a low ROCE of 10.92%

The company has been able to generate a Return on Capital Employed (avg) of 10.92% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 4.53% and Operating profit at -2.72% over the last 5 years

Negative results in Mar 25

INTEREST(HY) At CNY 144.84 MM has Grown at 89.4%
OPERATING CASH FLOW(Y) Lowest at CNY -12,471.69 MM
RAW MATERIAL COST(Y) Grown by 22.77% (YoY)

With ROE of 2.18%, it has a attractive valuation with a 0.71 Price to Book Value

Over the past year, while the stock has generated a return of -10.79%, its profits have fallen by -1.7%

Below par performance in long term as well as near term

Along with generating -10.79% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to China Petroleum Engineering Corp. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

Is China Petroleum Engineering Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Petroleum Engineering Corp.

-10.79%

0.25

26.13%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.53%

EBIT Growth (5y)

-2.72%

EBIT to Interest (avg)

9.04

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.48

Sales to Capital Employed (avg)

2.26

Tax Ratio

57.11%

Dividend Payout Ratio

30.76%

Pledged Shares

Institutional Holding

ROCE (avg)

10.92%

ROE (avg)

3.17%

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

0.71

EV to EBIT

-0.09

EV to EBITDA

-0.05

EV to Capital Employed

-0.01

EV to Sales

-0.00

PEG Ratio

Dividend Yield

1.03%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

2.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

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

7What is working for the Company

NET PROFIT(HY)

At CNY 197.36 MM has Grown at 113.46%

NET SALES(HY)

At CNY 51,697.57 MM has Grown at 22.92%

INVENTORY TURNOVER RATIO(HY)

Highest at 5.48%

DEBTORS TURNOVER RATIO(HY)

Highest at 1.74%

-12What is not working for the Company

INTEREST(HY)

At CNY 144.84 MM has Grown at 89.4%

OPERATING CASH FLOW(Y)

Lowest at CNY -12,471.69 MM

RAW MATERIAL COST(Y)

Grown by 22.77% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -45.94 %

Here's what is working for China Petroleum Engineering Corp.

Net Profit

At CNY 197.36 MM has Grown at 113.46%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 51,697.57 MM has Grown at 22.92%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 5.48%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 1.74%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for China Petroleum Engineering Corp.

Interest

At CNY 144.84 MM has Grown at 89.4%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -12,471.69 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at -45.94 %

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

Raw Material Cost

Grown by 22.77% (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