Farasis Energy (Gan Zhou) Co., Ltd. (688567) 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

Farasis Energy (Gan Zhou) Co., Ltd.

Why is Farasis Energy (Gan Zhou) Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of 44.86% and Operating profit at -4.34% over the last 5 years

NET SALES(HY) At CNY 4,238.94 MM has Grown at -32.47%
RAW MATERIAL COST(Y) Grown by 56.54% (YoY)
OPERATING PROFIT(Q) Lowest at CNY -224.39 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -3.87%, its profits have risen by 71.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.87% returns in the last 1 year, the stock has also underperformed China Shanghai Composite 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 Electronics & Appliances)

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

Is Farasis Energy (Gan Zhou) Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Farasis Energy (Gan Zhou) Co., Ltd.

4.48%

0.50

45.42%

China Shanghai Composite

24.7%

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)

44.86%

EBIT Growth (5y)

-4.34%

EBIT to Interest (avg)

-10.62

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.20

Sales to Capital Employed (avg)

0.67

Tax Ratio

26.63%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.47

EV to EBIT

-61.14

EV to EBITDA

56.33

EV to Capital Employed

2.19

EV to Sales

2.95

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.58%

ROE (Latest)

-2.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,098.06 MM

-29What is not working for the Company

NET SALES(HY)

At CNY 4,238.94 MM has Grown at -32.47%

RAW MATERIAL COST(Y)

Grown by 56.54% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -224.39 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -10.15 %

PRE-TAX PROFIT(Q)

Lowest at CNY -286.6 MM

NET PROFIT(Q)

Lowest at CNY -214.02 MM

EPS(Q)

Lowest at CNY -0.18

Here's what is working for Farasis Energy (Gan Zhou) Co., Ltd.

Operating Cash Flow

Highest at CNY 1,098.06 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 (CNY MM)

Here's what is not working for Farasis Energy (Gan Zhou) Co., Ltd.

Net Sales

At CNY 4,238.94 MM has Grown at -32.47%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -286.6 MM has Fallen at -235.25%

over average net sales of the previous four periods of CNY -85.49 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -214.02 MM has Fallen at -192.77%

over average net sales of the previous four periods of CNY -73.1 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -224.39 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -10.15 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -286.6 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -214.02 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.18

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 56.54% (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