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 -12.37%, its profits have risen by 97.4%

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 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.

-16.07%

0.16

48.49%

China Shanghai Composite

8.25%

1.20

14.07%

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)

-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

Pledged Shares

Institutional Holding

ROCE (avg)

0.38%

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

2.65

EV to EBIT

102.75

EV to EBITDA

48.54

EV to Capital Employed

3.36

EV to Sales

3.36

PEG Ratio

Dividend Yield

ROCE (Latest)

3.27%

ROE (Latest)

-0.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

28What 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 periods

MOJO 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 periods

MOJO 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 periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.18

in the last five periods

MOJO 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 periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 3.31 times

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 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