Huaneng Lancang River Hydropower Inc. (600025) 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

Huaneng Lancang River Hydropower Inc.

Why is Huaneng Lancang River Hydropower Inc. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 7.08%

Poor long term growth as Net Sales has grown by an annual rate of 6.32% and Operating profit at 6.48% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Sep 25

ROCE(HY) Lowest at 12.37%
DEBTORS TURNOVER RATIO(HY) Lowest at 6.66 times
OPERATING PROFIT MARGIN(Q) Lowest at 53.91 %

With ROE of 15.62%, it has a very expensive valuation with a 2.86 Price to Book Value

Over the past year, while the stock has generated a return of 14.74%, its profits have risen by 5.1% ; the PEG ratio of the company is 3.6
At the current price, the company has a high dividend yield of 2.1

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 Power)

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

Is Huaneng Lancang River Hydropower Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Huaneng Lancang River Hydropower Inc.

-100.0%

-0.55

15.39%

China Shanghai Composite

19.22%

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)

6.18%

EBIT Growth (5y)

6.17%

EBIT to Interest (avg)

4.21

Debt to EBITDA (avg)

6.28

Net Debt to Equity (avg)

2.23

Sales to Capital Employed (avg)

0.13

Tax Ratio

14.01%

Dividend Payout Ratio

44.92%

Pledged Shares

Institutional Holding

ROCE (avg)

7.08%

ROE (avg)

13.49%

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

2.12

EV to EBIT

22.13

EV to EBITDA

15.58

EV to Capital Employed

1.49

EV to Sales

10.75

PEG Ratio

Dividend Yield

2.00%

ROCE (Latest)

6.72%

ROE (Latest)

10.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly 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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 20,130.58 MM

CASH AND EQV(HY)

Highest at CNY 9,587.26 MM

DEBT-EQUITY RATIO (HY)

Lowest at 130.04 %

INVENTORY TURNOVER RATIO(HY)

Highest at 274.21 times

-9What is not working for the Company

ROCE(HY)

Lowest at 11.72%

NET SALES(Q)

At CNY 5,762.82 MM has Fallen at -13.33%

INTEREST COVERAGE RATIO(Q)

Lowest at 411.71

OPERATING PROFIT MARGIN(Q)

Lowest at 45.06 %

OPERATING PROFIT(Q)

Lowest at CNY 2,596.75 MM

Here's what is working for Huaneng Lancang River Hydropower Inc.

Operating Cash Flow

Highest at CNY 20,130.58 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 9,587.26 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 130.04 %

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 274.21 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Huaneng Lancang River Hydropower Inc.

Net Sales

At CNY 5,762.82 MM has Fallen at -13.33%

over average net sales of the previous four periods of CNY 6,648.83 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 411.71

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 45.06 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at CNY 2,596.75 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)