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

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 0.09% and Operating profit at -0.48% over the last 5 years
The company is Net-Debt Free

With a growth in Net Profit of 72.09%, the company declared Outstanding results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 1,570.08 MM
ROCE(HY) Highest at 10.72%
DEBT-EQUITY RATIO (HY) Lowest at 155.7 %

With ROE of 19.46%, it has a very expensive valuation with a 1.87 Price to Book Value

Over the past year, while the stock has generated a return of 25.31%, its profits have risen by 96.4% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.8

Market Beating performance in long term as well as near term

Along with generating 25.31% 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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guizhou Qianyuan Power Co., Ltd.

25.31%

0.29

28.43%

China Shanghai Composite

22.32%

1.71

13.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.09%

EBIT Growth (5y)

-0.48%

EBIT to Interest (avg)

2.79

Debt to EBITDA (avg)

5.41

Net Debt to Equity (avg)

1.81

Sales to Capital Employed (avg)

0.21

Tax Ratio

18.19%

Dividend Payout Ratio

34.91%

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

1.87

EV to EBIT

11.38

EV to EBITDA

8.53

EV to Capital Employed

1.35

EV to Sales

5.55

PEG Ratio

0.10

Dividend Yield

0.84%

ROCE (Latest)

11.89%

ROE (Latest)

19.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

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

38What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,570.08 MM

ROCE(HY)

Highest at 10.72%

DEBT-EQUITY RATIO (HY)

Lowest at 155.7 %

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -21.67% (YoY

NET SALES(Q)

Highest at CNY 1,285.85 MM

OPERATING PROFIT(Q)

Highest at CNY 814.3 MM

PRE-TAX PROFIT(Q)

Highest at CNY 762.21 MM

NET PROFIT(Q)

Highest at CNY 365.68 MM

EPS(Q)

Highest at CNY 0.86

-1What is not working for the Company

CASH AND EQV(HY)

Lowest at CNY 503.87 MM

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

Net Sales

At CNY 1,285.85 MM has Grown at 116.77%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 762.21 MM has Grown at 193.6%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 365.68 MM has Grown at 176.77%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at 155.7 % 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

Operating Cash Flow

Highest at CNY 1,570.08 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 1,285.85 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 814.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 762.21 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 365.68 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.86

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -21.67% (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 Guizhou Qianyuan Power Co., Ltd.

Cash and Eqv

Lowest at CNY 503.87 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents