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 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 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.

-11.6%

-0.36

20.01%

China Shanghai Composite

21.43%

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)

8.18%

EBIT Growth (5y)

-9.45%

EBIT to Interest (avg)

2.45

Debt to EBITDA (avg)

5.70

Net Debt to Equity (avg)

0.77

Sales to Capital Employed (avg)

0.49

Tax Ratio

27.97%

Dividend Payout Ratio

54.28%

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

Industry P/E

Price to Book Value

1.10

EV to EBIT

39.96

EV to EBITDA

17.13

EV to Capital Employed

1.06

EV to Sales

1.85

PEG Ratio

0.37

Dividend Yield

1.38%

ROCE (Latest)

2.66%

ROE (Latest)

3.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

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

11What is working for the Company

NET PROFIT(HY)

At CNY 108.77 MM has Grown at 223.03%

RAW MATERIAL COST(Y)

Fallen by -34.2% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.34 times

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 1,252.48 MM

PRE-TAX PROFIT(Q)

At CNY 51.39 MM has Fallen at -59.11%

NET PROFIT(Q)

At CNY 31.12 MM has Fallen at -70.55%

INTEREST COVERAGE RATIO(Q)

Lowest at 171.55

OPERATING PROFIT(Q)

Lowest at CNY 97.64 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.77 %

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

Debtors Turnover Ratio

Highest at 5.34 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -34.2% (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 Chongqing Three Gorges Water Conservancy & Elect Pwr Co. Ltd.

Pre-Tax Profit

At CNY 51.39 MM has Fallen at -59.11%

over average net sales of the previous four periods of CNY 125.68 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 31.12 MM has Fallen at -70.55%

over average net sales of the previous four periods of CNY 105.68 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 1,252.48 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest Coverage Ratio

Lowest at 171.55

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 97.64 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.77 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales