CNOOC Ltd. (883) 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

United Energy Group Ltd.

CITIC Resources Holdings Ltd.

CNOOC Ltd.

China Petroleum & Chemical Corp.

Tian Lun Gas Holdings Ltd.

China Huarong Energy Co. Ltd.

Productive Technologies Co. Ltd.

CHK Oil Ltd.

Wisdom Wealth Resources Investment Holding Group Ltd.

PetroChina Co., Ltd.

Enviro Energy International Holdings Ltd.

Why is CNOOC Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 16.61%

Healthy long term growth as Net Sales has grown by an annual rate of 14.25% and Operating profit at 23.13%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 49.44

Flat results in Dec 25

INTEREST(HY) At HKD 1,576.46 MM has Grown at 32.96%
ROCE(HY) Lowest at 15.65%
INTEREST COVERAGE RATIO(Q) Lowest at 8,295

With ROE of 16.01%, it has a Fair valuation with a 1.61 Price to Book Value

Over the past year, while the stock has generated a return of 55.03%, its profits have fallen by -9%

Market Beating performance in long term as well as near term

Along with generating 55.03% returns in the last 1 year, the stock has outperformed Hang Seng Hong Kong 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 CNOOC Ltd. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

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

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

Is CNOOC Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

CNOOC Ltd.

55.03%

61.59

28.48%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.25%

EBIT Growth (5y)

23.13%

EBIT to Interest (avg)

49.44

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

0.48

Tax Ratio

27.64%

Dividend Payout Ratio

45.95%

Pledged Shares

Institutional Holding

ROCE (avg)

26.48%

ROE (avg)

16.61%

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

1.61

EV to EBIT

6.05

EV to EBITDA

4.19

EV to Capital Employed

1.81

EV to Sales

2.75

PEG Ratio

Dividend Yield

0.13%

ROCE (Latest)

29.93%

ROE (Latest)

16.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

Mildly Bearish

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

OPERATING CASH FLOW(Y)

Highest at HKD 471,522.42 MM

RAW MATERIAL COST(Y)

Fallen by 1.5% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 11.84 times

-10What is not working for the Company

INTEREST(HY)

At HKD 1,576.46 MM has Grown at 32.96%

ROCE(HY)

Lowest at 15.65%

INTEREST COVERAGE RATIO(Q)

Lowest at 8,295

OPERATING PROFIT(Q)

Lowest at HKD 130,767.29 MM

PRE-TAX PROFIT(Q)

Lowest at HKD 81,700 MM

NET PROFIT(Q)

Lowest at HKD 57,528.72 MM

EPS(Q)

Lowest at HKD 1.21

Here's what is working for CNOOC Ltd.

Operating Cash Flow

Highest at HKD 471,522.42 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 (HKD MM)

Debtors Turnover Ratio

Highest at 11.84 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 1.5% (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

Depreciation

Highest at HKD 46,404.83 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Here's what is not working for CNOOC Ltd.

Interest Coverage Ratio

Lowest at 8,295

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At HKD 1,576.46 MM has Grown at 32.96%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Operating Profit

Lowest at HKD 130,767.29 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Pre-Tax Profit

Lowest at HKD 81,700 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 57,528.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD 1.21

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)