Huaihe Energy (Group) Co., Ltd. (600575) 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

Huaihe Energy (Group) Co., Ltd.

Why is Huaihe Energy (Group) Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 20.57% and Operating profit at 5.61% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 6.78% signifying low profitability per unit of shareholders funds

Flat results in Sep 25

NET SALES(HY) At CNY 14,058.82 MM has Grown at -13.64%
DEBT-EQUITY RATIO (HY) Highest at 36.19 %

With ROE of 6.25%, it has a very expensive valuation with a 1.10 Price to Book Value

Over the past year, while the stock has generated a return of 18.85%, its profits have fallen by -35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Huaihe Energy (Group) Co., Ltd. should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Transport Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Huaihe Energy (Group) Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Huaihe Energy (Group) Co., Ltd.

-5.98%

-0.13

29.97%

China Shanghai Composite

16.78%

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)

17.77%

EBIT Growth (5y)

9.41%

EBIT to Interest (avg)

3.74

Debt to EBITDA (avg)

1.60

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

1.47

Tax Ratio

12.47%

Dividend Payout Ratio

79.17%

Pledged Shares

Institutional Holding

ROCE (avg)

5.70%

ROE (avg)

6.78%

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

0.69

EV to EBIT

28.45

EV to EBITDA

14.98

EV to Capital Employed

0.82

EV to Sales

0.90

PEG Ratio

0.33

Dividend Yield

4.81%

ROCE (Latest)

2.88%

ROE (Latest)

5.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

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

10What is working for the Company

NET SALES(Q)

At CNY 9,747.4 MM has Grown at 20.69%

PRE-TAX PROFIT(Q)

Highest at CNY 496.14 MM

-9What is not working for the Company

ROCE(HY)

Lowest at 6.35%

RAW MATERIAL COST(Y)

Grown by 13.62% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 72.15 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 13.98 times

INTEREST(Q)

Highest at CNY 96.28 MM

Here's what is working for Huaihe Energy (Group) Co., Ltd.

Pre-Tax Profit

At CNY 496.14 MM has Grown at 184%

over average net sales of the previous four periods of CNY 174.69 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 9,747.4 MM has Grown at 20.69%

over average net sales of the previous four periods of CNY 8,076.59 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 496.14 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Here's what is not working for Huaihe Energy (Group) Co., Ltd.

Interest

At CNY 96.28 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 96.28 MM

in the last five periods and Increased by inf% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 72.15 %

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 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 13.98 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 13.62% (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