Gansu Energy Chemical Co., Ltd. (000552) 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

Gansu Energy Chemical Co., Ltd.

Why is Gansu Energy Chemical Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 14.67% and Operating profit at -171.63% over the last 5 years

The company has declared negative results for the last 6 consecutive quarters

NET SALES(HY) At CNY 4,093.72 MM has Grown at -16.11%
PRE-TAX PROFIT(Q) At CNY -88.81 MM has Fallen at -238.41%
NET PROFIT(Q) At CNY -93.19 MM has Fallen at -374.67%

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 8.53%, its profits have fallen by -90.2%
At the current price, the company has a high dividend yield of 2.3

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 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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gansu Energy Chemical Co., Ltd.

8.53%

-0.90

25.53%

China Shanghai Composite

16.67%

1.14

14.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.67%

EBIT Growth (5y)

-171.63%

EBIT to Interest (avg)

10.46

Debt to EBITDA (avg)

0.30

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

0.47

Tax Ratio

21.97%

Dividend Payout Ratio

29.97%

Pledged Shares

Institutional Holding

ROCE (avg)

18.43%

ROE (avg)

11.03%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

102

Industry P/E

Price to Book Value

0.80

EV to EBIT

110.03

EV to EBITDA

10.91

EV to Capital Employed

0.84

EV to Sales

2.45

PEG Ratio

Dividend Yield

2.32%

ROCE (Latest)

0.77%

ROE (Latest)

0.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

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

2What is working for the Company

NET SALES(Q)

Highest at CNY 2,401.76 MM

-34What is not working for the Company

NET SALES(HY)

At CNY 4,093.72 MM has Grown at -16.11%

PRE-TAX PROFIT(Q)

At CNY -88.81 MM has Fallen at -238.41%

NET PROFIT(Q)

At CNY -93.19 MM has Fallen at -374.67%

ROCE(HY)

Lowest at -0.55%

DEBT-EQUITY RATIO (HY)

Highest at 36.11 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.53 times

OPERATING PROFIT(Q)

Lowest at CNY -72.53 MM

RAW MATERIAL COST(Y)

Grown by 63.04% (YoY

INTEREST(Q)

Highest at CNY 50.61 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.02 %

Here's what is working for Gansu Energy Chemical Co., Ltd.

Net Sales

Highest at CNY 2,401.76 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 2,401.76 MM has Grown at 28.67%

over average net sales of the previous four periods of CNY 1,866.57 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Gansu Energy Chemical Co., Ltd.

Pre-Tax Profit

At CNY -88.81 MM has Fallen at -238.41%

over average net sales of the previous four periods of CNY 64.16 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -93.19 MM has Fallen at -374.67%

over average net sales of the previous four periods of CNY 33.93 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 50.61 MM has Grown at 37.16%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -72.53 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Debt-Equity Ratio

Highest at 36.11 % and Grown

In each half year in the last five Semi-Annual periods

MOJO 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 4.53 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at CNY 50.61 MM

in the last five periods and Increased by 37.16% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at -3.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 63.04% (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