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

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 Heyuan Gas Co., Ltd.

Why is Hubei Heyuan Gas 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 17.02% and Operating profit at -0.06% 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 6.80% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 17.02% and Operating profit at -0.06% over the last 5 years

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

NET SALES(HY) At CNY 690.78 MM has Grown at -23.19%
NET PROFIT(HY) At CNY 39.57 MM has Grown at -25.05%
INTEREST(HY) At CNY 29.48 MM has Grown at 8.15%

With ROE of 5.11%, it has a very expensive valuation with a 2.09 Price to Book Value

Over the past year, while the stock has generated a return of 59.88%, its profits have fallen by -7.8%
At the current price, the company has a high dividend yield of 0.6

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.

34.49%

1.97

44.31%

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)

17.02%

EBIT Growth (5y)

-0.06%

EBIT to Interest (avg)

3.20

Debt to EBITDA (avg)

4.15

Net Debt to Equity (avg)

1.04

Sales to Capital Employed (avg)

0.55

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

2.09

EV to EBIT

41.62

EV to EBITDA

17.25

EV to Capital Employed

1.51

EV to Sales

3.29

PEG Ratio

Dividend Yield

0.64%

ROCE (Latest)

3.62%

ROE (Latest)

5.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

No Trend

OBV

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 206.97 MM

CASH AND EQV(HY)

Highest at CNY 769.41 MM

-26What is not working for the Company

NET SALES(HY)

At CNY 690.78 MM has Grown at -23.19%

NET PROFIT(HY)

At CNY 39.57 MM has Grown at -25.05%

INTEREST(HY)

At CNY 29.48 MM has Grown at 8.15%

ROCE(HY)

Lowest at 4.7%

INVENTORY TURNOVER RATIO(HY)

Lowest at 17.54%

INTEREST COVERAGE RATIO(Q)

Lowest at 212.58

RAW MATERIAL COST(Y)

Grown by 9.98% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 29.39 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.33 %

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

Operating Cash Flow

Highest at CNY 206.97 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 769.41 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Hubei Heyuan Gas Co., Ltd.

Net Sales

At CNY 690.78 MM has Grown at -23.19%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 212.58

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 39.57 MM has Grown at -25.05%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Interest

At CNY 29.48 MM has Grown at 8.15%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 17.54% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit

Lowest at CNY 29.39 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.33 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 9.98% (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