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 4.70% and Operating profit at 5.15% 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 Mar 26

The company has declared positive results for the last 3 consecutive quarters
NET SALES(HY) At CNY 1,584.75 MM has Grown at 82.48%
OPERATING CASH FLOW(Y) Highest at CNY 2,428.97 MM
ROCE(HY) Highest at 15%

With ROE of 26.29%, it has a very expensive valuation with a 1.96 Price to Book Value

Over the past year, while the stock has generated a return of 18.11%, its profits have risen by 145.3% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 2.6

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.

18.11%

0.01

31.69%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.70%

EBIT Growth (5y)

5.15%

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

1.96

EV to EBIT

8.82

EV to EBITDA

6.15

EV to Capital Employed

1.44

EV to Sales

4.32

PEG Ratio

0.05

Dividend Yield

2.64%

ROCE (Latest)

16.28%

ROE (Latest)

26.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly 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

28What is working for the Company

NET SALES(HY)

At CNY 1,584.75 MM has Grown at 82.48%

OPERATING CASH FLOW(Y)

Highest at CNY 2,428.97 MM

ROCE(HY)

Highest at 15%

DEBT-EQUITY RATIO (HY)

Lowest at 129.26 %

RAW MATERIAL COST(Y)

Fallen by -9.6% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 13.37 times

PRE-TAX PROFIT(Q)

At CNY 190.95 MM has Grown at 62.19%

NET PROFIT(Q)

At CNY 89.22 MM has Grown at 72.09%

-3What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY 223.35 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 47.68 %

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

Net Sales

At CNY 1,584.75 MM has Grown at 82.48%

Year on Year (YoY)

MOJO Watch

Sales trend is very positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at 129.26 % 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 2,428.97 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 190.95 MM has Grown at 62.19%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 89.22 MM has Grown at 72.09%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debtors Turnover Ratio

Highest at 13.37 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -9.6% (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 Guizhou Qianyuan Power Co., Ltd.

Operating Profit

Lowest at CNY 223.35 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 47.68 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales