Hubei Heyuan Gas Co., Ltd. (002971) 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

Hubei Heyuan Gas Co., Ltd.

Why is Hubei Heyuan Gas Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 6.02%

Poor long term growth as Net Sales has grown by an annual rate of 14.64% and Operating profit at -0.08% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared Negative results for the last 5 consecutive quarters

INTEREST(HY) At CNY 43.29 MM has Grown at 41.74%
INTEREST COVERAGE RATIO(Q) Lowest at 127.41
PRE-TAX PROFIT(Q) At CNY 9.84 MM has Fallen at -42.5%

With ROE of 5.11%, it has a very expensive valuation with a 4.83 Price to Book Value

Over the past year, while the stock has generated a return of 56.86%, its profits have fallen by -7.8%
At the current price, the company has a high dividend yield of 0.3

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 Specialty Chemicals)

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

Is Hubei Heyuan Gas Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hubei Heyuan Gas Co., Ltd.

53.71%

1.06

45.46%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.64%

EBIT Growth (5y)

-0.08%

EBIT to Interest (avg)

3.20

Debt to EBITDA (avg)

4.15

Net Debt to Equity (avg)

1.04

Sales to Capital Employed (avg)

0.53

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

56.85%

Pledged Shares

Institutional Holding

ROCE (avg)

6.02%

ROE (avg)

6.80%

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

4.83

EV to EBIT

76.74

EV to EBITDA

31.81

EV to Capital Employed

2.78

EV to Sales

6.07

PEG Ratio

Dividend Yield

0.28%

ROCE (Latest)

3.62%

ROE (Latest)

5.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -22.95% (YoY

-18What is not working for the Company

INTEREST(HY)

At CNY 43.29 MM has Grown at 41.74%

INTEREST COVERAGE RATIO(Q)

Lowest at 127.41

PRE-TAX PROFIT(Q)

At CNY 9.84 MM has Fallen at -42.5%

OPERATING PROFIT(Q)

Lowest at CNY 27.37 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.42 %

NET PROFIT(Q)

Lowest at CNY 8.53 MM

EPS(Q)

Lowest at CNY 0.04

Here's what is working for Hubei Heyuan Gas Co., Ltd.

Raw Material Cost

Fallen by -22.95% (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 Hubei Heyuan Gas Co., Ltd.

Interest

At CNY 43.29 MM has Grown at 41.74%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 127.41

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 9.84 MM has Fallen at -42.5%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 8.53 MM has Fallen at -43.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 27.37 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.42 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 8.53 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)