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.

13.23%

-0.55

15.39%

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)

6.32%

EBIT Growth (5y)

6.48%

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

43.38%

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

2.86

EV to EBIT

23.52

EV to EBITDA

15.53

EV to Capital Employed

1.56

EV to Sales

12.06

PEG Ratio

3.60

Dividend Yield

2.10%

ROCE (Latest)

6.65%

ROE (Latest)

15.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

RAW MATERIAL COST(Y)

Fallen by -1.64% (YoY

CASH AND EQV(HY)

Highest at CNY 9,340.72 MM

DEBT-EQUITY RATIO (HY)

Lowest at 136.16 %

NET SALES(Q)

Highest at CNY 7,681.84 MM

-4What is not working for the Company

ROCE(HY)

Lowest at 12.37%

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.66 times

OPERATING PROFIT MARGIN(Q)

Lowest at 53.91 %

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

Net Sales

Highest at CNY 7,681.84 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 7,681.84 MM has Grown at 18.36%

over average net sales of the previous four periods of CNY 6,490.02 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 9,340.72 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 136.16 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -1.64% (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 Huaneng Lancang River Hydropower Inc.

Operating Profit Margin

Lowest at 53.91 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 6.66 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio