Henan Shenhuo Coal Industary & Electricity Power Corp. Ltd. (000933) 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 Shenhuo Coal Industary & Electricity Power Corp. Ltd.

Why is Henan Shenhuo Coal Industary & Electricity Power Corp. Ltd. ?

With ROE of 20.06%, it has a expensive valuation with a 1.90 Price to Book Value

Over the past year, while the stock has generated a return of 34.99%, its profits have fallen by -28.4%
At the current price, the company has a high dividend yield of 4.2

Majority shareholders : FIIs

Market Beating performance in long term as well as near term

Along with generating 34.99% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Henan Shenhuo Coal Industary & Electricity Power Corp. Ltd. should be less than 10%
Overall Portfolio exposure to Non - Ferrous Metals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Non - Ferrous Metals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Henan Shenhuo Coal Industary & Electricity Power Corp. Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Henan Shenhuo Coal Industary & Electricity Power Corp. Ltd.

58.96%

0.47

38.41%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.35%

EBIT Growth (5y)

55.67%

EBIT to Interest (avg)

9.63

Debt to EBITDA (avg)

2.23

Net Debt to Equity (avg)

0.50

Sales to Capital Employed (avg)

0.87

Tax Ratio

29.18%

Dividend Payout Ratio

41.78%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

22.56%

ROE (avg)

29.55%

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

1.90

EV to EBIT

9.34

EV to EBITDA

6.86

EV to Capital Employed

1.63

EV to Sales

1.29

PEG Ratio

Dividend Yield

4.24%

ROCE (Latest)

17.47%

ROE (Latest)

20.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 28.08%

-23What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 7,714.56 MM

ROCE(HY)

Lowest at 18.07%

INTEREST(Q)

At CNY 71.78 MM has Grown at 25.77%

RAW MATERIAL COST(Y)

Grown by 38.85% (YoY

CASH AND EQV(HY)

Lowest at CNY 8,545.73 MM

OPERATING PROFIT(Q)

Lowest at CNY 914.85 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.63 %

PRE-TAX PROFIT(Q)

Lowest at CNY 889.92 MM

NET PROFIT(Q)

Lowest at CNY 708.26 MM

EPS(Q)

Lowest at CNY 0.31

Here's what is working for Henan Shenhuo Coal Industary & Electricity Power Corp. Ltd.

Debtors Turnover Ratio

Highest at 28.08%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Henan Shenhuo Coal Industary & Electricity Power Corp. Ltd.

Operating Cash Flow

Lowest at CNY 7,714.56 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)

Interest

At CNY 71.78 MM has Grown at 25.77%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 914.85 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 9.63 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 889.92 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 889.92 MM has Fallen at -41.09%

over average net sales of the previous four periods of CNY 1,510.57 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 708.26 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

At CNY 708.26 MM has Fallen at -34.22%

over average net sales of the previous four periods of CNY 1,076.69 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.31

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 8,545.73 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 38.85% (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