Hengsheng Energy 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

Hengsheng Energy Co., Ltd.

Why is Hengsheng Energy Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 7.83% and Operating profit at -0.80% over the last 5 years

The company has declared negative results for the last 6 consecutive quarters

INTEREST(HY) At CNY 7.7 MM has Grown at 166.62%
NET PROFIT(Q) At CNY 26.95 MM has Fallen at -54.21%
ROCE(HY) Lowest at 12.95%

With ROE of 16.40%, it has a very expensive valuation with a 8.12 Price to Book Value

Over the past year, while the stock has generated a return of 123.95%, its profits have risen by 19.4% ; the PEG ratio of the company is 2.6

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 Power)

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

Is Hengsheng Energy Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hengsheng Energy Co., Ltd.

84.42%

2.73

54.11%

China Shanghai Composite

17.07%

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)

7.83%

EBIT Growth (5y)

-0.80%

EBIT to Interest (avg)

40.24

Debt to EBITDA (avg)

0.63

Net Debt to Equity (avg)

0.43

Sales to Capital Employed (avg)

0.65

Tax Ratio

20.35%

Dividend Payout Ratio

71.75%

Pledged Shares

Institutional Holding

ROCE (avg)

22.34%

ROE (avg)

18.25%

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

8.12

EV to EBIT

57.78

EV to EBITDA

36.57

EV to Capital Employed

5.41

EV to Sales

9.37

PEG Ratio

2.56

Dividend Yield

ROCE (Latest)

9.36%

ROE (Latest)

16.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Bullish

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

OPERATING CASH FLOW(Y)

Highest at CNY 213.16 MM

RAW MATERIAL COST(Y)

Fallen by -9.89% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.29 times

-26What is not working for the Company

INTEREST(HY)

At CNY 7.7 MM has Grown at 166.62%

NET PROFIT(Q)

At CNY 26.95 MM has Fallen at -54.21%

ROCE(HY)

Lowest at 12.95%

DEBT-EQUITY RATIO (HY)

Highest at 59.93 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.5 times

INTEREST COVERAGE RATIO(Q)

Lowest at 1,095.73

PRE-TAX PROFIT(Q)

At CNY 35.6 MM has Fallen at -49.74%

OPERATING PROFIT(Q)

Lowest at CNY 38.07 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 16.95 %

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

Operating Cash Flow

Highest at CNY 213.16 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Highest at 4.29 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -9.89% (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 Hengsheng Energy Co., Ltd.

Interest

At CNY 7.7 MM has Grown at 166.62%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 26.95 MM has Fallen at -54.21%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 1,095.73

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 35.6 MM has Fallen at -49.74%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 59.93 % 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

Inventory Turnover Ratio

Lowest at 6.5 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit

Lowest at CNY 38.07 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 16.95 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales