Hubei Energy Group Co., Ltd. (000883) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hubei Energy Group Co., Ltd.

Why is Hubei 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 2.95% and Operating profit at -3.14% 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 6.62% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.95% and Operating profit at -3.14% over the last 5 years

Flat results in Mar 25

NET PROFIT(HY) At CNY -271.38 MM has Grown at -133.73%
INTEREST(HY) At CNY 536.33 MM has Grown at 6.21%
RAW MATERIAL COST(Y) Grown by 33.7% (YoY)

With ROE of 4.90%, it has a attractive valuation with a 0.87 Price to Book Value

Over the past year, while the stock has generated a return of -6.19%, its profits have fallen by -32.5%
At the current price, the company has a high dividend yield of 2.2

Below par performance in long term as well as near term

Along with generating -6.19% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hubei Energy Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

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

Is Hubei Energy Group Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hubei Energy Group Co., Ltd.

-7.2%

-1.30

17.48%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.95%

EBIT Growth (5y)

-3.14%

EBIT to Interest (avg)

3.92

Debt to EBITDA (avg)

5.90

Net Debt to Equity (avg)

1.31

Sales to Capital Employed (avg)

0.26

Tax Ratio

25.61%

Dividend Payout Ratio

35.74%

Pledged Shares

Institutional Holding

ROCE (avg)

5.32%

ROE (avg)

6.62%

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

0.87

EV to EBIT

28.03

EV to EBITDA

12.35

EV to Capital Employed

0.94

EV to Sales

3.90

PEG Ratio

Dividend Yield

2.21%

ROCE (Latest)

3.36%

ROE (Latest)

4.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

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

2What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 5,872.73 MM

-17What is not working for the Company

NET PROFIT(HY)

At CNY -271.38 MM has Grown at -133.73%

INTEREST(HY)

At CNY 536.33 MM has Grown at 6.21%

RAW MATERIAL COST(Y)

Grown by 33.7% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 135.14 %

NET SALES(Q)

Lowest at CNY 4,140.8 MM

PRE-TAX PROFIT(Q)

At CNY 409.95 MM has Fallen at -36.14%

Here's what is working for Hubei Energy Group Co., Ltd.

Operating Cash Flow

Highest at CNY 5,872.73 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Here's what is not working for Hubei Energy Group Co., Ltd.

Net Profit

At CNY -271.38 MM has Grown at -133.73%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 4,140.8 MM has Fallen at -16.5%

over average net sales of the previous four periods of CNY 4,959.27 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 536.33 MM has Grown at 6.21%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 4,140.8 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 409.95 MM has Fallen at -36.14%

over average net sales of the previous four periods of CNY 641.95 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 135.14 %

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

Raw Material Cost

Grown by 33.7% (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