ScoreWhy is Gansu Energy Chemical Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 13.83% and Operating profit at -23.27% over the last 5 years
2
With a fall in Net Sales of -5.76%, the company declared Very Negative results in Mar 25
- The company has declared negative results for the last 6 consecutive quarters
- NET SALES(Q) At CNY 1,795.33 MM has Fallen at -21.48%
- ROCE(HY) Lowest at 4.29%
- DEBT-EQUITY RATIO (HY) Highest at 17.65 %
3
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 -7.17%, its profits have fallen by -90.2%
- At the current price, the company has a high dividend yield of 3.3
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -7.17% 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 ReportHow 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 Miscellaneous)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Gansu Energy Chemical Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Gansu Energy Chemical Co., Ltd.
-12.72%
-1.15
21.82%
China Shanghai Composite
14.77%
1.01
15.10%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.83%
EBIT Growth (5y)
-23.27%
EBIT to Interest (avg)
10.46
Debt to EBITDA (avg)
0.30
Net Debt to Equity (avg)
0.18
Sales to Capital Employed (avg)
0.50
Tax Ratio
21.97%
Dividend Payout Ratio
29.97%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
18.43%
ROE (avg)
11.03%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
71
Industry P/E
Price to Book Value
0.56
EV to EBIT
84.98
EV to EBITDA
8.43
EV to Capital Employed
0.65
EV to Sales
1.90
PEG Ratio
NA
Dividend Yield
3.31%
ROCE (Latest)
0.77%
ROE (Latest)
0.79%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-43What is not working for the Company
NET SALES(Q)
At CNY 1,795.33 MM has Fallen at -21.48%
ROCE(HY)
Lowest at 4.29%
DEBT-EQUITY RATIO
(HY)
Highest at 17.65 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 4.91%
INTEREST(Q)
At CNY 33.07 MM has Grown at 21.21%
INTEREST COVERAGE RATIO(Q)
Lowest at 183.18
OPERATING PROFIT(Q)
Lowest at CNY 60.57 MM
RAW MATERIAL COST(Y)
Grown by 54.76% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.73%
OPERATING PROFIT MARGIN(Q)
Lowest at 3.37 %
PRE-TAX PROFIT(Q)
Lowest at CNY 67.68 MM
NET PROFIT(Q)
Lowest at CNY 51.06 MM
EPS(Q)
Lowest at CNY 0.01
Here's what is not working for Gansu Energy Chemical Co., Ltd.
Net Sales
At CNY 1,795.33 MM has Fallen at -21.48%
over average net sales of the previous four periods of CNY 2,286.56 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Pre-Tax Profit
At CNY 67.68 MM has Fallen at -81.82%
over average net sales of the previous four periods of CNY 372.35 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 51.06 MM has Fallen at -83.19%
over average net sales of the previous four periods of CNY 303.78 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Interest
At CNY 33.07 MM has Grown at 21.21%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Interest Coverage Ratio
Lowest at 183.18
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at CNY 60.57 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite negative
Operating Profit (CNY MM)
Debt-Equity Ratio
Highest at 17.65 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 4.91% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Operating Profit Margin
Lowest at 3.37 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CNY 67.68 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Net Profit
Lowest at CNY 51.06 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
EPS
Lowest at CNY 0.01
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)
Debtors Turnover Ratio
Lowest at 5.73%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 54.76% (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
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