Guizhou Qianyuan Power Co., Ltd. (002039) 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

Guizhou Qianyuan Power Co., Ltd.

Why is Guizhou Qianyuan Power Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.55%

Poor long term growth as Net Sales has grown by an annual rate of -3.85% and Operating profit at -6.98% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
DEBT-EQUITY RATIO (HY) Lowest at 0 %
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost

With ROE of 10.30%, it has a very expensive valuation with a 1.80 Price to Book Value

Over the past year, while the stock has generated a return of 18.76%, its profits have fallen by -32.2%
At the current price, the company has a high dividend yield of 0.9

Market Beating performance in long term as well as near term

Along with generating 18.76% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guizhou Qianyuan Power Co., Ltd. should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Guizhou Qianyuan Power Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guizhou Qianyuan Power Co., Ltd.

20.13%

-0.04

22.77%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.85%

EBIT Growth (5y)

-6.98%

EBIT to Interest (avg)

2.79

Debt to EBITDA (avg)

5.41

Net Debt to Equity (avg)

1.81

Sales to Capital Employed (avg)

0.17

Tax Ratio

18.19%

Dividend Payout Ratio

31.35%

Pledged Shares

Institutional Holding

ROCE (avg)

8.55%

ROE (avg)

15.48%

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

1.80

EV to EBIT

18.31

EV to EBITDA

10.56

EV to Capital Employed

1.29

EV to Sales

7.61

PEG Ratio

Dividend Yield

0.95%

ROCE (Latest)

7.02%

ROE (Latest)

10.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

4What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 0 %

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

-21What is not working for the Company

NET PROFIT(Q)

At CNY 28.71 MM has Fallen at -76.4%

OPERATING CASH FLOW(Y)

Lowest at CNY 1,112.69 MM

NET SALES(Q)

At CNY 481.93 MM has Fallen at -20.22%

RAW MATERIAL COST(Y)

Grown by 101.73% (YoY

CASH AND EQV(HY)

Lowest at CNY 149.25 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 0%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0%

OPERATING PROFIT(Q)

Lowest at CNY 161.69 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 33.55 %

PRE-TAX PROFIT(Q)

Fallen at -33.12%

Here's what is working for Guizhou Qianyuan Power Co., Ltd.

Debt-Equity Ratio

Lowest at 0 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Guizhou Qianyuan Power Co., Ltd.

Net Profit

At CNY 28.71 MM has Fallen at -76.4%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 481.93 MM has Fallen at -20.22%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 1,112.69 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 161.69 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 33.55 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -33.12%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Cash and Eqv

Lowest at CNY 149.25 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 0%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 101.73% (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