Chongqing Three Gorges Water Conservancy & Elect Pwr Co. Ltd. (600116) 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

Chongqing Three Gorges Water Conservancy & Elect Pwr Co. Ltd.

Why is Chongqing Three Gorges Water Conservancy & Elect Pwr Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 3.80%

The company has been able to generate a Return on Capital Employed (avg) of 3.80% signifying low profitability per unit of total capital (equity and debt)

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 24.46% and Operating profit at -0.34% 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 4.80% signifying low profitability per unit of shareholders funds
RAW MATERIAL COST(Y) Fallen by -78.88% (YoY)
CASH AND EQV(HY) Highest at CNY 5,635.21 MM
DEBT-EQUITY RATIO (HY) Lowest at 59.81 %

With ROE of 0.74%, it has a very expensive valuation with a 0.93 Price to Book Value

Over the past year, while the stock has generated a return of 2.09%, its profits have fallen by -88.2%
At the current price, the company has a high dividend yield of 1.7

Underperformed the market in the last 1 year

The stock has generated a return of 2.09% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Chongqing Three Gorges Water Conservancy & Elect Pwr 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 Chongqing Three Gorges Water Conservancy & Elect Pwr Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chongqing Three Gorges Water Conservancy & Elect Pwr Co. Ltd.

2.94%

-0.36

20.01%

China Shanghai Composite

13.33%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.46%

EBIT Growth (5y)

-0.34%

EBIT to Interest (avg)

2.45

Debt to EBITDA (avg)

5.70

Net Debt to Equity (avg)

0.77

Sales to Capital Employed (avg)

0.51

Tax Ratio

27.97%

Dividend Payout Ratio

55.01%

Pledged Shares

Institutional Holding

ROCE (avg)

3.80%

ROE (avg)

4.80%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

126

Industry P/E

Price to Book Value

0.93

EV to EBIT

70.53

EV to EBITDA

17.79

EV to Capital Employed

0.96

EV to Sales

1.95

PEG Ratio

Dividend Yield

1.67%

ROCE (Latest)

1.37%

ROE (Latest)

0.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly 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

15What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -78.88% (YoY

CASH AND EQV(HY)

Highest at CNY 5,635.21 MM

DEBT-EQUITY RATIO (HY)

Lowest at 59.81 %

PRE-TAX PROFIT(Q)

Highest at CNY 289.63 MM

NET PROFIT(Q)

Highest at CNY 298.16 MM

EPS(Q)

Highest at CNY 0.16

-2What is not working for the Company

ROCE(HY)

Lowest at 2.45%

Here's what is working for Chongqing Three Gorges Water Conservancy & Elect Pwr Co. Ltd.

Pre-Tax Profit

At CNY 289.63 MM has Grown at 951.83%

over average net sales of the previous four periods of CNY 27.54 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 298.16 MM has Grown at 993.94%

over average net sales of the previous four periods of CNY 27.26 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 289.63 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 298.16 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.16

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 5,635.21 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 59.81 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -78.88% (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