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

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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 18.99% and Operating profit at 3.91% 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 -5.55%, the company declared Very Negative results in Mar 25

OPERATING CASH FLOW(Y) Lowest at CNY 4,719.93 MM
INTEREST(Q) At CNY 229.91 MM has Grown at 130.63%
INVENTORY TURNOVER RATIO(HY) Lowest at 23.45%

With ROE of 9.19%, it has a very expensive valuation with a 1.38 Price to Book Value

Over the past year, while the stock has generated a return of -30.98%, its profits have fallen by -4.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -30.98% 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 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?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guanghui Energy Co., Ltd.

-30.98%

-1.54

23.70%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.99%

EBIT Growth (5y)

3.91%

EBIT to Interest (avg)

7.35

Debt to EBITDA (avg)

2.51

Net Debt to Equity (avg)

0.64

Sales to Capital Employed (avg)

1.00

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

1.38

EV to EBIT

13.09

EV to EBITDA

7.91

EV to Capital Employed

1.23

EV to Sales

1.44

PEG Ratio

Dividend Yield

12.49%

ROCE (Latest)

9.38%

ROE (Latest)

9.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

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

NET PROFIT(HY)

At CNY 1,651.88 MM has Grown at 46.12%

RAW MATERIAL COST(Y)

Fallen by -19.6% (YoY

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 4,719.93 MM

INTEREST(Q)

At CNY 229.91 MM has Grown at 130.63%

INVENTORY TURNOVER RATIO(HY)

Lowest at 23.45%

NET SALES(Q)

Fallen at -12.42%

OPERATING PROFIT(Q)

Lowest at CNY 1,173.34 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.63 %

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

Net Profit

At CNY 1,651.88 MM has Grown at 46.12%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -19.6% (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.

Operating Cash Flow

Lowest at CNY 4,719.93 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 (CNY MM)

Interest

At CNY 229.91 MM has Grown at 130.63%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Fallen at -12.42%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 1,173.34 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 13.63 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 23.45%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio