Why is Hengsheng Energy Co., Ltd. ?
1
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
2
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%
3
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
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.
94.89%
2.73
54.11%
China Shanghai Composite
21.68%
1.58
14.20%
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)
0.62
Tax Ratio
20.35%
Dividend Payout Ratio
53.85%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
22.34%
ROE (avg)
18.25%
Valuation Key Factors 
Factor
Value
P/E Ratio
54
Industry P/E
Price to Book Value
6.65
EV to EBIT
47.31
EV to EBITDA
32.59
EV to Capital Employed
4.55
EV to Sales
7.69
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
9.63%
ROE (Latest)
12.23%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
15What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 323.13 MM
NET PROFIT(HY)
At CNY 108.88 MM has Grown at 59.4%
DEBTORS TURNOVER RATIO(HY)
Highest at 4.89 times
RAW MATERIAL COST(Y)
Fallen by -2.42% (YoY
NET SALES(Q)
At CNY 313.29 MM has Grown at 39.75%
-10What is not working for the Company
INTEREST(Q)
At CNY 3.85 MM has Grown at 11.85%
Here's what is working for Hengsheng Energy Co., Ltd.
Operating Cash Flow
Highest at CNY 323.13 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Profit
At CNY 108.88 MM has Grown at 59.4%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Debtors Turnover Ratio
Highest at 4.89 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Net Sales
At CNY 313.29 MM has Grown at 39.75%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Raw Material Cost
Fallen by -2.42% (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 3.85 MM has Grown at 11.85%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)






