Why is Henan Lantian Gas Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 4.51% and Operating profit at 1.79% over the last 5 years
2
With a fall in Operating Profit of -30.54%, the company declared Very Negative results in Mar 25
- The company has declared negative results for the last 6 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at CNY 579.63 MM
- NET PROFIT(HY) At CNY 183.84 MM has Grown at -40.51%
- NET SALES(HY) At CNY 2,563.21 MM has Grown at -13.7%
3
Below par performance in long term as well as near term
- Along with generating -31.92% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
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.
-31.92%
-2.31
18.25%
China Shanghai Composite
15.44%
1.06
14.51%
Quality key factors
Factor
Value
Sales Growth (5y)
4.51%
EBIT Growth (5y)
1.79%
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)
0.98
Tax Ratio
22.64%
Dividend Payout Ratio
125.00%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
21.14%
ROE (avg)
14.25%
Valuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
1.94
EV to EBIT
14.41
EV to EBITDA
10.39
EV to Capital Employed
1.84
EV to Sales
1.65
PEG Ratio
NA
Dividend Yield
1.17%
ROCE (Latest)
12.77%
ROE (Latest)
10.59%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
Bullish
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Bearish
Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
1What is working for the Company
NET SALES(Q)
At CNY 1,392.17 MM has Grown at 17.45%
-17What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 579.63 MM
NET PROFIT(HY)
At CNY 183.84 MM has Grown at -40.51%
NET SALES(HY)
At CNY 2,563.21 MM has Grown at -13.7%
ROCE(HY)
Lowest at 11.1%
RAW MATERIAL COST(Y)
Grown by 14.17% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 18.64%
Here's what is working for Henan Lantian Gas Co., Ltd.
Net Sales
At CNY 1,392.17 MM has Grown at 17.45%
over average net sales of the previous four periods of CNY 1,185.33 MMMOJO 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 183.84 MM has Grown at -40.51%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Operating Cash Flow
Lowest at CNY 579.63 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)
Debtors Turnover Ratio
Lowest at 18.64%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 14.17% (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






