Guanghui Energy Co., Ltd. (600256) 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

Guanghui Energy Co., Ltd.

Why is Guanghui Energy Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 18.33% and Operating profit at 4.53% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 18.73% signifying low profitability per unit of shareholders funds

With a fall in Net Sales of -25.81%, the company declared Very Negative results in Sep 25

ROCE(HY) Lowest at 7.85%
INTEREST COVERAGE RATIO(Q) Lowest at 299.93
CASH AND EQV(HY) Lowest at CNY 5,895.07 MM

With ROE of 9.19%, it has a very expensive valuation with a 1.34 Price to Book Value

Over the past year, while the stock has generated a return of 16.72%, its profits have fallen by -4.7%

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 Oil)

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

Is Guanghui Energy Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guanghui Energy Co., Ltd.

12.1%

-0.31

30.39%

China Shanghai Composite

16.67%

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)

18.33%

EBIT Growth (5y)

4.53%

EBIT to Interest (avg)

7.35

Debt to EBITDA (avg)

2.51

Net Debt to Equity (avg)

0.64

Sales to Capital Employed (avg)

0.96

Tax Ratio

19.19%

Dividend Payout Ratio

134.28%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

16.42%

ROE (avg)

18.73%

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

1.34

EV to EBIT

12.86

EV to EBITDA

7.77

EV to Capital Employed

1.21

EV to Sales

1.41

PEG Ratio

Dividend Yield

12.83%

ROCE (Latest)

9.38%

ROE (Latest)

9.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -6.75% (YoY

-34What is not working for the Company

ROCE(HY)

Lowest at 7.85%

INTEREST COVERAGE RATIO(Q)

Lowest at 299.93

CASH AND EQV(HY)

Lowest at CNY 5,895.07 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 20.85 times

NET SALES(Q)

Lowest at CNY 6,782.52 MM

OPERATING PROFIT(Q)

Lowest at CNY 566.19 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.35 %

PRE-TAX PROFIT(Q)

Fallen at -26.09%

NET PROFIT(Q)

Lowest at CNY 158.64 MM

EPS(Q)

Lowest at CNY 0.02

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

Raw Material Cost

Fallen by -6.75% (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

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

Net Sales

At CNY 6,782.52 MM has Fallen at -25.81%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Profit

At CNY 158.64 MM has Fallen at -71.02%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 299.93

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 6,782.52 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 566.19 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.35 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -26.09%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 158.64 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 5,895.07 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 20.85 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio