ENN Energy Holdings Ltd. (2688) 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

KunLun Energy Co. Ltd.

United Strength Power Holdings Ltd.

China Resources Gas Group Ltd.

ENN Energy Holdings Ltd.

Zhongyu Energy Holdings Ltd.

Towngas Smart Energy Co. Ltd.

China Gas Holdings Ltd.

Beijing Enterprises Holdings Ltd.

The Hong Kong & China Gas Co., Ltd.

China Suntien Green Energy Corp., Ltd.

China HK Power Smart Energy Group Ltd.

Why is ENN Energy Holdings Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at HKD 19,753.75 MM
ROCE(HY) Lowest at 13.29%
RAW MATERIAL COST(Y) Grown by 14.85% (YoY)

With ROE of 15.76%, it has a Expensive valuation with a 1.47 Price to Book Value

Over the past year, while the stock has generated a return of -1.24%, its profits have fallen by -4.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.24% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods

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 Gas)

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

Is ENN Energy Holdings Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

ENN Energy Holdings Ltd.

-100.0%

23.02

23.08%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.23%

EBIT Growth (5y)

1.00%

EBIT to Interest (avg)

13.54

Debt to EBITDA (avg)

1.01

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

1.72

Tax Ratio

24.36%

Dividend Payout Ratio

51.72%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

17.67%

ROE (avg)

19.40%

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

1.47

EV to EBIT

9.74

EV to EBITDA

6.99

EV to Capital Employed

1.37

EV to Sales

0.70

PEG Ratio

Dividend Yield

0.00%

ROCE (Latest)

14.11%

ROE (Latest)

15.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

4What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 1,812.89

DIVIDEND PAYOUT RATIO(Y)

Highest at 27.68%

INVENTORY TURNOVER RATIO(HY)

Highest at 65.28 times

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 19,753.75 MM

ROCE(HY)

Lowest at 13.29%

RAW MATERIAL COST(Y)

Grown by 14.85% (YoY

CASH AND EQV(HY)

Lowest at HKD 7,165.84 MM

OPERATING PROFIT(Q)

Lowest at HKD 5,588.81 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.35 %

PRE-TAX PROFIT(Q)

Lowest at HKD 3,804.64 MM

NET PROFIT(Q)

Lowest at HKD 2,787.26 MM

EPS(Q)

Lowest at HKD 2.35

Here's what is working for ENN Energy Holdings Ltd.

Interest Coverage Ratio

Highest at 1,812.89

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Inventory Turnover Ratio

Highest at 65.28 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 27.68%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at HKD 1,827.13 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 ENN Energy Holdings Ltd.

Operating Cash Flow

Lowest at HKD 19,753.75 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 (HKD MM)

Operating Profit

Lowest at HKD 5,588.81 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 9.35 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at HKD 3,804.64 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 2,787.26 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD 2.35

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Cash and Eqv

Lowest at HKD 7,165.84 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 14.85% (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