Henan Lantian Gas Co., Ltd. () 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

Henan Lantian Gas Co., Ltd.

Why is Henan Lantian Gas Co., Ltd. ?

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

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

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 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 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.

-37.75%

-1.30

22.59%

China Shanghai Composite

16.78%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.17%

EBIT Growth (5y)

-7.76%

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)

0.93

Tax Ratio

22.64%

Dividend Payout Ratio

101.37%

Pledged Shares

Institutional Holding

ROCE (avg)

21.14%

ROE (avg)

14.25%

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

1.37

EV to EBIT

16.28

EV to EBITDA

12.44

EV to Capital Employed

1.30

EV to Sales

1.38

PEG Ratio

Dividend Yield

1.54%

ROCE (Latest)

8.01%

ROE (Latest)

7.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

Mildly Bearish

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

1What is working for the Company

NET SALES(Q)

At CNY 1,224.36 MM has Grown at 20.75%

-24What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 511.91 MM

NET PROFIT(HY)

At CNY 105.69 MM has Grown at -42.51%

NET SALES(HY)

At CNY 2,234.38 MM has Grown at -12.96%

ROCE(HY)

Lowest at 6.62%

RAW MATERIAL COST(Y)

Grown by 13.78% (YoY

CASH AND EQV(HY)

Lowest at CNY 1,447.73 MM

DEBT-EQUITY RATIO (HY)

Highest at 21.54 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 15.14 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 17.21 times

Here's what is working for Henan Lantian Gas Co., Ltd.

Net Sales

At CNY 1,224.36 MM has Grown at 20.75%

over average net sales of the previous four periods of CNY 1,013.97 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Henan Lantian Gas Co., Ltd.

Net Profit

At CNY 105.69 MM has Grown at -42.51%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 511.91 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)

Cash and Eqv

Lowest at CNY 1,447.73 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 21.54 %

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

Inventory Turnover Ratio

Lowest at 15.14 times

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 17.21 times

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 13.78% (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