ScoreWhy is Houpu Clean Energy Group Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 0%
- The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward
2
Poor long term growth as Net Sales has grown by an annual rate of 12.89% and Operating profit at 17.67% over the last 5 years
3
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -12.37%, its profits have risen by 97.4%
4
Below par performance in long term as well as near term
- Along with generating -12.37% 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 ReportHow much should you buy?
- Overall Portfolio exposure to Houpu Clean Energy Group Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Houpu Clean Energy Group Co., Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Houpu Clean Energy Group Co., Ltd.
-12.16%
0.16
48.49%
China Shanghai Composite
0.9%
1.20
14.07%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.89%
EBIT Growth (5y)
17.67%
EBIT to Interest (avg)
-3.14
Debt to EBITDA (avg)
11.23
Net Debt to Equity (avg)
0.06
Sales to Capital Employed (avg)
0.53
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0.38%
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
2.65
EV to EBIT
102.75
EV to EBITDA
48.54
EV to Capital Employed
3.36
EV to Sales
3.36
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
3.27%
ROE (Latest)
-0.11%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend28What is working for the Company
NET SALES(9M)
At CNY 818.28 MM has Grown at 18.96%
ROCE(HY)
Highest at 7.98%
INVENTORY TURNOVER RATIO(HY)
Highest at 1.85 times
CASH AND EQV(HY)
Highest at CNY 1,474.02 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 3.31 times
PRE-TAX PROFIT(Q)
Highest at CNY 84.26 MM
NET PROFIT(Q)
Highest at CNY 85.52 MM
EPS(Q)
Highest at CNY 0.18
-3What is not working for the Company
INTEREST(Q)
At CNY 1.6 MM has Grown at 11.99%
RAW MATERIAL COST(Y)
Grown by 20.5% (YoY
Here's what is working for Houpu Clean Energy Group Co., Ltd.
Pre-Tax Profit
At CNY 84.26 MM has Grown at 429.9%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 85.52 MM has Grown at 426.54%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Inventory Turnover Ratio
Highest at 1.85 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Sales
At CNY 818.28 MM has Grown at 18.96%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Pre-Tax Profit
Highest at CNY 84.26 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 85.52 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.18
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Cash and Eqv
Highest at CNY 1,474.02 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 3.31 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Houpu Clean Energy Group Co., Ltd.
Interest
At CNY 1.6 MM has Grown at 11.99%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Raw Material Cost
Grown by 20.5% (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
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