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

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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 7.07% and Operating profit at 8.41% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Mar 25

INTEREST(9M) At CNY 2,005.71 MM has Grown at 42.54%
OPERATING CASH FLOW(Y) Lowest at CNY 17,726.17 MM
NET SALES(Q) At CNY 5,171.55 MM has Fallen at -15.22%

With ROE of 15.62%, it has a very expensive valuation with a 2.77 Price to Book Value

Over the past year, while the stock has generated a return of 0.52%, its profits have risen by 5.1% ; the PEG ratio of the company is 3.5
At the current price, the company has a high dividend yield of 2.2

Underperformed the market in the last 1 year

The stock has generated a return of 0.52% in the last 1 year, much lower than market (China Shanghai Composite) returns of 14.77%

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.

0.52%

-0.62

16.15%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.07%

EBIT Growth (5y)

8.41%

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

2.77

EV to EBIT

23.15

EV to EBITDA

15.28

EV to Capital Employed

1.54

EV to Sales

11.87

PEG Ratio

3.50

Dividend Yield

2.16%

ROCE (Latest)

6.65%

ROE (Latest)

15.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

ROCE(HY)

Highest at 15.09%

RAW MATERIAL COST(Y)

Fallen by -5.18% (YoY

CASH AND EQV(HY)

Highest at CNY 5,552.76 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 253.49%

-14What is not working for the Company

INTEREST(9M)

At CNY 2,005.71 MM has Grown at 42.54%

OPERATING CASH FLOW(Y)

Lowest at CNY 17,726.17 MM

NET SALES(Q)

At CNY 5,171.55 MM has Fallen at -15.22%

INTEREST COVERAGE RATIO(Q)

Lowest at 395.56

OPERATING PROFIT MARGIN(Q)

Lowest at 50.16 %

OPERATING PROFIT(Q)

Lowest at CNY 2,593.83 MM

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

Cash and Eqv

Highest at CNY 5,552.76 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 253.49%

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 -5.18% (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.

Interest

At CNY 2,005.71 MM has Grown at 42.54%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 17,726.17 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 5,171.55 MM has Fallen at -15.22%

over average net sales of the previous four periods of CNY 6,099.77 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 395.56

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 50.16 % 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 2,593.83 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)