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 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 Transport Services)

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

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

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Huaihe Energy (Group) Co., Ltd.

13.73%

-0.13

29.97%

China Shanghai Composite

15.17%

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)

20.57%

EBIT Growth (5y)

5.61%

EBIT to Interest (avg)

3.74

Debt to EBITDA (avg)

1.60

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

1.62

Tax Ratio

12.47%

Dividend Payout Ratio

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

1.10

EV to EBIT

24.05

EV to EBITDA

9.78

EV to Capital Employed

1.07

EV to Sales

0.61

PEG Ratio

Dividend Yield

ROCE (Latest)

4.46%

ROE (Latest)

6.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.17% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 22.13 times

PRE-TAX PROFIT(Q)

At CNY 243.2 MM has Grown at 61.41%

NET PROFIT(Q)

Highest at CNY 304.66 MM

EPS(Q)

Highest at CNY 0.08

-5What is not working for the Company

NET SALES(HY)

At CNY 14,058.82 MM has Grown at -13.64%

DEBT-EQUITY RATIO (HY)

Highest at 36.19 %

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

Pre-Tax Profit

At CNY 243.2 MM has Grown at 61.41%

over average net sales of the previous four periods of CNY 150.67 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 304.66 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 304.66 MM has Grown at 66.85%

over average net sales of the previous four periods of CNY 182.6 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 22.13 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -0.17% (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 Huaihe Energy (Group) Co., Ltd.

Net Sales

At CNY 14,058.82 MM has Grown at -13.64%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 36.19 %

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