Henan Dayou Energy Co., Ltd. (600403) 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

Henan Dayou Energy Co., Ltd.

Why is Henan Dayou 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 -6.30% and Operating profit at -224.24% 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 8.85% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -6.30% and Operating profit at -224.24% over the last 5 years

The company has declared negative results for the last 10 consecutive quarters

The company has declared negative results in Dec 22 after 6 consecutive negative quarters
OPERATING CASH FLOW(Y) Lowest at CNY -294.11 MM
DEBT-EQUITY RATIO (HY) Highest at 64.06 %
NET SALES(Q) At CNY 1,004.51 MM has Fallen at -13.97%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 145.86%, its profits have fallen by -18.4%
At the current price, the company has a high dividend yield of 0

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 Miscellaneous)

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

Is Henan Dayou Energy Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Henan Dayou Energy Co., Ltd.

145.86%

2.75

67.22%

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)

-6.30%

EBIT Growth (5y)

-224.24%

EBIT to Interest (avg)

-0.15

Debt to EBITDA (avg)

8.33

Net Debt to Equity (avg)

0.43

Sales to Capital Employed (avg)

0.41

Tax Ratio

18.51%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

9.17%

ROE (avg)

8.85%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.85

EV to EBIT

-10.21

EV to EBITDA

-275.40

EV to Capital Employed

1.55

EV to Sales

2.92

PEG Ratio

Dividend Yield

ROCE (Latest)

-15.16%

ROE (Latest)

-29.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

NET PROFIT(HY)

Higher at CNY -614.42 MM

RAW MATERIAL COST(Y)

Fallen by -114.29% (YoY

-22What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -294.11 MM

DEBT-EQUITY RATIO (HY)

Highest at 64.06 %

NET SALES(Q)

At CNY 1,004.51 MM has Fallen at -13.97%

INTEREST(Q)

At CNY 60.58 MM has Grown at 429.08%

OPERATING PROFIT(Q)

Lowest at CNY -216.79 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -21.58 %

PRE-TAX PROFIT(Q)

Lowest at CNY -271.4 MM

NET PROFIT(Q)

Lowest at CNY -309.15 MM

EPS(Q)

Lowest at CNY -0.13

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

Raw Material Cost

Fallen by -114.29% (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 Henan Dayou Energy Co., Ltd.

Operating Cash Flow

Lowest at CNY -294.11 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)

Net Sales

At CNY 1,004.51 MM has Fallen at -13.97%

over average net sales of the previous four periods of CNY 1,167.6 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 60.58 MM has Grown at 429.08%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 64.06 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Profit

Lowest at CNY -216.79 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -21.58 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -271.4 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -309.15 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.13

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)