ScoreWhy is Henan Lantian Gas Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 3.84% and Operating profit at -1.45% over the last 5 years
2
With a fall in Net Sales of -7.65%, the company declared Very Negative results in Sep 25
- The company has declared negative results for the last 6 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at CNY 508.23 MM
- ROCE(HY) Lowest at 9.24%
- INTEREST COVERAGE RATIO(Q) Lowest at 450.66
3
Below par performance in long term as well as near term
- Along with generating -9.95% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow 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 Gas)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Henan Lantian Gas Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Henan Lantian Gas Co., Ltd.
-23.3%
-1.30
22.59%
China Shanghai Composite
17.07%
1.58
14.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.84%
EBIT Growth (5y)
-1.45%
EBIT to Interest (avg)
18.48
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
0.01
Sales to Capital Employed (avg)
0.97
Tax Ratio
22.64%
Dividend Payout Ratio
125.00%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
21.14%
ROE (avg)
14.25%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
2.09
EV to EBIT
15.46
EV to EBITDA
11.15
EV to Capital Employed
1.97
EV to Sales
1.77
PEG Ratio
NA
Dividend Yield
1.09%
ROCE (Latest)
12.77%
ROE (Latest)
10.59%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-37What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 508.23 MM
ROCE(HY)
Lowest at 9.24%
INTEREST COVERAGE RATIO(Q)
Lowest at 450.66
PRE-TAX PROFIT(Q)
At CNY 69.81 MM has Fallen at -42.45%
RAW MATERIAL COST(Y)
Grown by 24.37% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 19.36 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 17.18 times
NET SALES(Q)
Lowest at CNY 792.06 MM
INTEREST(Q)
Highest at CNY 15.74 MM
OPERATING PROFIT(Q)
Lowest at CNY 70.92 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 8.95 %
NET PROFIT(Q)
At CNY 57.51 MM has Fallen at -37.23%
Here's what is not working for Henan Lantian Gas Co., Ltd.
Net Sales
At CNY 792.06 MM has Fallen at -27.77%
over average net sales of the previous four periods of CNY 1,096.54 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Operating Cash Flow
Lowest at CNY 508.23 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Interest
At CNY 15.74 MM has Grown at 110.75%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Interest Coverage Ratio
Lowest at 450.66
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Pre-Tax Profit
At CNY 69.81 MM has Fallen at -42.45%
over average net sales of the previous four periods of CNY 121.32 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Sales
Lowest at CNY 792.06 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Interest
Highest at CNY 15.74 MM
in the last five periods and Increased by 110.75% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Profit
Lowest at CNY 70.92 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 8.95 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Net Profit
At CNY 57.51 MM has Fallen at -37.23%
over average net sales of the previous four periods of CNY 91.63 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
Debt-Equity Ratio
Highest at 19.36 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 17.18 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 24.37% (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
Non Operating Income
Highest at CNY 0.21 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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