Houpu Clean Energy Group Co., Ltd. (300471) 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

Houpu Clean Energy Group Co., Ltd.

Why is Houpu Clean Energy Group Co., Ltd. ?

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

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

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 -13.33%, its profits have risen by 97.4%

Below par performance in long term as well as near term

Along with generating -13.33% 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 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 Industrial Manufacturing)

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

Is Houpu Clean Energy Group Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Houpu Clean Energy Group Co., Ltd.

-10.3%

0.15

48.12%

China Shanghai Composite

20.18%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.89%

EBIT Growth (5y)

17.67%

EBIT to Interest (avg)

-7.49

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.06

Sales to Capital Employed (avg)

0.53

Tax Ratio

0.53%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.19

EV to EBIT

82.63

EV to EBITDA

39.04

EV to Capital Employed

2.70

EV to Sales

2.71

PEG Ratio

Dividend Yield

ROCE (Latest)

3.27%

ROE (Latest)

-0.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

25What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 157.83 MM

NET SALES(HY)

At CNY 564.96 MM has Grown at 28.59%

NET PROFIT(HY)

Higher at CNY 7.96 MM

ROCE(HY)

Highest at -0.06%

RAW MATERIAL COST(Y)

Fallen by -8.85% (YoY

CASH AND EQV(HY)

Highest at CNY 1,593.95 MM

DEBT-EQUITY RATIO (HY)

Lowest at -29.43 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.78 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.65 times

-13What is not working for the Company

INTEREST(HY)

At CNY 2.95 MM has Grown at 18.97%

PRE-TAX PROFIT(Q)

At CNY -1.11 MM has Fallen at -112.53%

NET PROFIT(Q)

At CNY -2.36 MM has Fallen at -137.65%

OPERATING PROFIT(Q)

Lowest at CNY -5.89 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.56 %

Here's what is working for Houpu Clean Energy Group Co., Ltd.

Operating Cash Flow

Highest at CNY 157.83 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 564.96 MM has Grown at 28.59%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 1,593.95 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -29.43 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.78 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.65 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 -8.85% (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 Houpu Clean Energy Group Co., Ltd.

Pre-Tax Profit

At CNY -1.11 MM has Fallen at -112.53%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -2.36 MM has Fallen at -137.65%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 2.95 MM has Grown at 18.97%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -5.89 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -3.56 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales